Main reasons to start your Stowmarket lease extension

Why you should start your Stowmarket lease extension today:

A Stowmarket lease depreciates with the years remaining on the lease.

The value of Stowmarket 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 below than eighty years

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

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lenders will not lend on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This may cause difficulties as and when you wish to dispose of or refinance your flat as it will be practically unmortgageable. You might not have an imminent plan to sell but when you do your buyer must wait 2 years before they can start the legal procedures for a lease extension.

What makes us experts in Stowmarket lease extensions?

Regardless of whether you are a tenant or a freeholder in Stowmarket,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stowmarket valuers.

Stowmarket Lease Extension Case Studies:

Adam, Stowmarket, Suffolk,

Adam was the the leasehold owner of a 2 bedroom apartment in Stowmarket on the market with a lease of fraction over 59 years outstanding. Adam informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Stowmarket case:

In 2009 we were phoned by Mr W Mason who, having moved into a garden flat in Stowmarket in June 2002. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable homes in Stowmarket with an extended lease were worth £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease expired on 10 October 2105. Taking into account 79 years left we approximated the compensation to the freeholder for the lease extension to be within £7,600 and £8,800 exclusive of expenses.

Stowmarket case:

Dr Mia Thomas acquired a newly refurbished flat in Stowmarket in September 1998. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative residencies in Stowmarket with an extended lease were valued around £270,000. The average amount of ground rent was £65 invoiced per annum. The lease end date was in 2094. Taking into account 68 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.