Top reasons for St Leonards On Sea lease extension

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

Increase your lease and increase your St Leonards On Sea property value

The market value of St Leonards On Sea leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than 80 years

St Leonards On Sea property with a lease extension has roughly the same value as a freehold

Leasehold properties in St Leonards On Sea with more than 100 years outstanding on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders may not loan monies on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in St Leonards On Sea lease extensions?

Regardless of whether you are a tenant or a landlord in St Leonards On Sea,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Leonards On Sea valuers.

St Leonards On Sea Lease Extension Case Summaries:

Kyle, St Leonards On Sea, East Sussex

16 months ago Kyle, started to get near to the 80-year mark with the lease on his ground floor flat in St Leonards On Sea. Having bought his property twenty years ago, the unexpired term was of minimal interest. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Kyle arranged for a lease extension just under the wire last May. Kyle and the freeholder via the managing agents ultimately settled on an amount of £6,000 . If he not met the deadline, the premium would have escalated by at least £850.

St Leonards On Sea case:

In 2013 we were approached by Mr and Mrs. B Scott who, having acquired a one bedroom flat in St Leonards On Sea in June 2002. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Identical flats in St Leonards On Sea with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected yearly. The lease ended in 2095. Considering the 69 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.

St Leonards On Sea case:

Dr Ethan Brooks moved into a newly refurbished apartment in St Leonards On Sea in July 2012. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in St Leonards On Sea with a long lease were worth £285,000. The mid-range ground rent payable was £55 collected every twelve months. The lease expired on 2 February 2106. Considering the 80 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.