Top reasons for Taverham lease extension

Why you should start your Taverham lease extension today:

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

The re-sale value of a leasehold property in Taverham is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the eighty year cut off point. Leasehold Reform legislation enables Taverham qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

Taverham property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Taverham with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may not grant a mortgage on a short lease

Mortgage companies do not like short residential leases. You are likely to encounter problems if you need to sell your flat in Taverham if the unexpired lease term is under the criteria set by most lenders. Different lenders have different criteria but on the whole they are looking for an unexpired term of at least 65 years.

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

The conveyancers that we work with procure Taverham 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 conveyancing solicitor we work with provide it.

Taverham Lease Extension Case Summaries:

Cameron, Taverham, Norfolk

In 2014 Cameron, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Taverham. Having purchased his property 18 years previously, the length of the lease was of little concern. by good luck, he realised he needed to take steps soon on Extending the lease. Cameron extended the lease just under the wire last April. Cameron and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have increased by at least £1,050.

Taverham case:

In 2009 we were e-mailed by Mrs Natalie Bonnet who, having owned a garden apartment in Taverham in July 1999. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Similar properties in Taverham with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 collected per annum. The lease finished in 2098. Given that there were 72 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.

Taverham case:

In 2010 we were called by Ms L Clark who, having completed a one bedroom apartment in Taverham in March 1995. The question was if we could estimate the price would be for a ninety year lease extension. Identical flats in Taverham with 100 year plus lease were in the region of £256,600. The average ground rent payable was £60 invoiced yearly. The lease ran out on 1 April 2078. Taking into account 52 years unexpired we estimated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus expenses.