Main reasons to commence your Polegate lease extension

Main reasons to commence your Polegate lease extension today:

A Polegate lease depreciates with the years remaining on the lease.

With a long leasehold property in Polegate, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years remaining. Residents in Polegate with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below 80 years outstanding, under the relevant Act the landlord is entitled to calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.

Polegate property with a lease extension has roughly the same value as a freehold

Leasehold premises in Polegate with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.

Lending institutions will not grant a mortgage on a short lease

Banks and building societies are inclined not lend on short residential leases. You most probably encounter problems where you want to sell your flat in Polegate if the unexpired term of your lease is under the criteria set by the majority of banks and building societies. Different mortgage companies have different requirements but on the whole theyrequire a minimum remaining lease term of seventy years.

Get in touch with one of our Polegate lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Polegate,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Polegate valuers.

Polegate Lease Extension Example Cases:

Daniel, Polegate, East Sussex

Last year Daniel, came very near to the eighty-year mark with the lease on his two bedroom flat in Polegate. In buying his home two decades ago, the lease term was of little significance. Thankfully, he noticed he would imminently be paying an escalated premium for a lease extension. Daniel extended the lease just in the nick of time last April. Daniel and the freeholder via the management company subsequently agreed on the final figure of £5,000 . If the lease had dropped to less than eighty years, the sum would have increased by at least £1,000.

Polegate case:

Mr and Mrs. R Norbert owned a first floor apartment in Polegate in March 2001. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Identical homes in Polegate with a long lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease ran out on 16 July 2086. Having 60 years remaining we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of legals.

Polegate case:

In 2012 we were contacted by Dr Kian André who, having owned a newly refurbished flat in Polegate in July 2010. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical homes in Polegate with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated in 2097. Given that there were 71 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.