Top reasons for St Leonards On Sea lease extension

Main reasons to commence your St Leonards On Sea lease extension today:

A St Leonards On Sea lease depreciates with the years remaining on the lease.

As the length of the unexpired term of a St Leonards On Sea domestic lease lessens so does its value and therefore the value of your property. If the lease has, beyond 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in St Leonards On Sea will qualify for this right; however a lawyer will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.

Lenders may not lend on a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our St Leonards On Sea lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you enhanced control over the value of your St Leonards On Sea leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

St Leonards On Sea Lease Extension Example Cases:

Sarah, St Leonards On Sea, East Sussex,

Following protracted negotiations with the landlord of her first floor apartment in St Leonards On Sea, Sarah initiated the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension was concluded in August 2009. The freeholder’s charges were restricted to slightly above 650 pounds.

St Leonards On Sea case:

In 2012 we were contacted by Dr S Wilson who, having took over the lease of a recently refurbished apartment in St Leonards On Sea in October 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in St Leonards On Sea with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed every twelve months. The lease concluded in 2103. Considering the 77 years unexpired we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.

St Leonards On Sea case:

In 2009 we were e-mailed by Dr I Thompson who, having acquired a first floor flat in St Leonards On Sea in June 2005. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar residencies in St Leonards On Sea with a long lease were in the region of £183,600. The average amount of ground rent was £65 billed monthly. The lease finished in 2083. Given that there were 57 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.