Main reasons to start your Pagham lease extension

Main reasons to start your Pagham lease extension today:

Increase your lease and increase your Pagham property value

Pagham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Pagham enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pagham you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

Pagham property with a lease extension is almost the same value as a freehold

Leasehold premises in Pagham with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not loan monies with a short lease

Lenders do not like short residential leases. You are likely to experience difficulties where you want to sell your flat in Pagham if the unexpired lease term is less than the criteria set by most lenders. Different mortgage companies have varying requirements but generally they are looking for an unexpired term of at least seventy years.

What makes us experts in Pagham lease extensions?

The conveyancers that we work with undertake Pagham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Pagham Lease Extension Case Studies:

Jacob, Pagham, West Sussex

Last October Jacob, started to get near to the eighty-year mark with the lease on his leasehold flat in Pagham. In buying his flat 18 years ago, the length of the lease was of no interest. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Jacob extended the lease just under the wire in May. Jacob and the freeholder ultimately agreed on a premium of £5,500 . If the lease had slid below eighty years, the premium would have escalated by at least £850.

Pagham case:

Dr Theo Cooper moved into a one bedroom flat in Pagham in March 2011. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar flats in Pagham with a long lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease finished on 4 August 2082. Having 56 years unexpired we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus legals.

Pagham case:

In 2010 we were called by Mr S Bertrand who, having completed a purpose-built flat in Pagham in November 2012. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Identical premises in Pagham with 100 year plus lease were valued around £242,600. The average amount of ground rent was £45 billed yearly. The lease ran out on 17 May 2093. Given that there were 67 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus legals.