Why you should start your Spalding lease extension

Top reasons for lease extension now:

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

For those whose Spalding flat is held on a long lease, our message is clear – if you ignore the situation, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.

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

Leasehold residencies in Spalding with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to lend on a short lease

Mortgage companies do not grant a mortgage on short residential leases. You are likely to encounter difficulties where you need to sell your flat in Spalding if the unexpired lease term is below the criteria set by most banks and building societies. Different mortgage companies have varying requirements but generally theyrequire an unexpired term of at least 65 years.

Why use us for your lease extension in Spalding?

The conveyancers that we work with handle Spalding 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.

Spalding Lease Extension Example Cases:

Alfie, Spalding, Lincolnshire

Half a year ago Alfie, started to get close to the 80-year mark with the lease on his basement flat in Spalding. Having bought his flat twenty years previously, the length of the lease was of little bearing. Thankfully, it dawned on him that he would soon be paying way over the odds for Extending the lease. Alfie arranged for a lease extension at the eleventh hour last September. Alfie and the landlord who owned the flat above in the end agreed on the final figure of £5,500 . If he had missed the deadline, the premium would have increased by at least £1,125.

Spalding case:

Dr P Turner completed a one bedroom flat in Spalding in August 2012. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Similar flats in Spalding with an extended lease were valued around £260,200. The average amount of ground rent was £65 collected monthly. The lease ran out in 2092. Given that there were 66 years outstanding we approximated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 not including costs.

Spalding case:

Last Autumn we were contacted by Mr and Mrs. W Turner , who completed a one bedroom flat in Spalding in May 2006. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Similar residencies in Spalding with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected yearly. The lease terminated on 18 July 2081. Given that there were 55 years remaining we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.