Main reasons to commence your Snaith lease extension

Why you should start your Snaith lease extension today:

A Snaith leasehold property depreciates with the years remaining on the lease.

Snaith leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Snaith residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Snaith you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.

Lending institutions will not lend on a short lease

Mortgage companies are really restricting their approach as regards to properties in Snaith with short leases. For example you might discover that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus limiting your market.

What makes us experts in Snaith lease extensions?

The conveyancing solicitors that we work with procure Snaith 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.

Snaith Lease Extension Case Studies:

Austin, Snaith, East Yorkshire

Last October Austin, came critically near to the 80-year threshold with the lease on his one bedroom apartment in Snaith. In buying his home 19 years previously, the lease term was of little significance. As luck would have it, he recognised he would imminently be paying an inflated amount for Extending the lease. Austin was able to extend his lease just under the wire in June. Austin and the freeholder via the management company in the end agreed on a premium of £5,500 . If he not met the deadline, the figure would have escalated by at least £900.

Snaith case:

Dr Lewis Martínez owned a one bedroom flat in Snaith in March 1995. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Snaith with a long lease were worth £264,000. The mid-range ground rent payable was £60 billed quarterly. The lease end date was in 2079. Taking into account 53 years outstanding we calculated the premium to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of professional charges.

Snaith case:

Mr and Mrs. T Phillips moved into a one bedroom apartment in Snaith in May 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar properties in Snaith with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish in 2090. Considering the 64 years remaining we approximated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus professional charges.