Main reasons to commence your Thetford lease extension

Main reasons to commence your Thetford lease extension today:

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

The re-sale value of a leasehold property in Thetford is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed well before the 80 year threshold. Current legislation entitles Thetford qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Thetford with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to grant a mortgage with a short lease

Lending institutions have specific criteria when loaning funds secured on leasehold property. Many will simply not lend at all once an unexpired lease term goes beneath a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining below 75 years as adequate security. As well as this being important when selling, it is also relevant where you are wanting to refinance your Thetford property.

What makes us experts in Thetford lease extensions?

The conveyancers that we work with handle Thetford 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.

Thetford Lease Extension Example Cases:

Rachael, Thetford, Norfolk,

Subsequent to protracted correspondence with the landlord of her purpose-built apartment in Thetford, Rachael commenced the lease extension process as the 80 year mark was swiftly coming. The legal work was finalised in September 2014. The landlord’s fees were negotiated to less than 650 GBP.

Thetford case:

Last Summer we were approach by Mr F Wright , who moved into a one bedroom flat in Thetford in July 2005. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Thetford with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced yearly. The lease concluded on 18 April 2101. Having 75 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.

Thetford case:

In 2011 we were e-mailed by Mr and Mrs. B Garcia who, having acquired a ground floor apartment in Thetford in July 2008. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Identical properties in Thetford with 100 year plus lease were worth £168,800. The mid-range amount of ground rent was £60 collected monthly. The lease finished in 2081. Having 55 years left we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of costs.