Why you should start your Soham lease extension

Why you should start your Soham lease extension today:

Increase your lease and increase your Soham property value

The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Soham can extend the lease for an additional ninety years under Leasehold Reform legislation. Please think carefully before delaying your Soham lease extension. Postponing the costs today simply increases the amount you will eventually have to pay for a lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Soham with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders will not issue a mortgage with a short lease

Nearly all mortgage lenders will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Soham property being difficult to sell or to obtain finance on.

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

The conveyancing solicitors that we work with undertake Soham 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 conveyancer we work with provide it.

Soham Lease Extension Case Summaries:

Owen, Soham, Cambridgeshire

In 2014 Owen, came seriously close to the 80-year threshold with the lease on his first floor flat in Soham. Having bought his property two decades ago, the unexpired term was of minimal interest. Luckily, he noticed he would soon be paying an inflated amount for Extending the lease. Owen arranged for a lease extension just in the nick of time last August. Owen and the freeholder eventually agreed on a premium of £6,000 . If the lease had descended to less than 80 years, the price would have gone up by at least £875.

Soham case:

Dr N Mitchell took over the lease of a first floor apartment in Soham in August 2001. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Identical properties in Soham with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 billed annually. The lease came to a finish on 12 June 2079. Taking into account 53 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of legals.

Soham case:

Last month we were contacted by Dr Benjamin Young , who owned a basement flat in Soham in June 1999. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Identical properties in Soham with an extended lease were worth £225,400. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish in 2090. Having 64 years remaining we estimated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of costs.