Why you should commence your Thurmaston lease extension

Top reasons for lease extension now:

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

The re-sale value of a leasehold property in Thurmaston is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be addressed well before the eighty year threshold. Statute enables Thurmaston qualifying lessees to an additional term of ninety years on top of the existing term, at a notional rent (no ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is generally considered that a property with over one hundred 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 remaining, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions may not loan monies on a short lease

Mortgage companies do not grant a mortgage on short residential leases. You most probably encounter difficulties if you want to sell your flat in Thurmaston if the remaining lease term is under the criteria set by the majority of mortgage companies. Different lenders have different requirements but in the main they are looking for a minimum remaining lease term of seventy years.

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

The conveyancers that we work with undertake Thurmaston 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 conveyancer we work with provide it.

Thurmaston Lease Extension Example Cases:

Ali, Thurmaston, Leicestershire

Two years ago Ali, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Thurmaston. Having purchased his home 18 years ago, the lease term was of no concern. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Ali extended the lease just under the wire last June. Ali and the freeholder via the management company ultimately settled on an amount of £5,000 . If he failed to meet the deadline, the price would have increased by at least £1,000.

Thurmaston case:

In 2014 we were called by Mrs Nicole Martínez who, having acquired a ground floor apartment in Thurmaston in September 2010. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Thurmaston with an extended lease were in the region of £295,000. The average amount of ground rent was £45 invoiced yearly. The lease lapsed on 25 March 2100. Given that there were 74 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.

Thurmaston case:

Mr and Mrs. T Lambert bought a purpose-built flat in Thurmaston in October 2011. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative homes in Thurmaston with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 collected per annum. The lease lapsed in 2089. Considering the 63 years outstanding we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus professional charges.