Why you should start your Yaxley lease extension

Top reasons for lease extension now:

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

Unfortunately that a Yaxley residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Yaxley property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Yaxley will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Yaxley with more than 100 years outstanding on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may not finance a property on a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly below 75 years as they are considered to be unacceptable for lending purposes.

What makes us experts in Yaxley lease extensions?

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

Yaxley Lease Extension Example Cases:

Zachary, Yaxley, Cambridgeshire

In recent months Zachary, started to get close to the eighty-year mark with the lease on his first floor apartment in Yaxley. Having purchased his property 18 years ago, the lease term was of no importance. by good luck, he realised he needed to take action soon on a lease extension. Zachary extended the lease at the eleventh hour in July. Zachary and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had slid to less than 80 years, the premium would have become more costly by a minimum £1,050.

Yaxley case:

In 2014 we were contacted by Dr Nathaniel Parker who, having purchased a one bedroom apartment in Yaxley in February 2000. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical premises in Yaxley with a long lease were valued around £166,800. The mid-range amount of ground rent was £50 invoiced monthly. The lease expired on 9 September 2076. Considering the 50 years as a residual term we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including legals.

Yaxley case:

Mr and Mrs. K Miller acquired a purpose-built apartment in Yaxley in August 2002. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative flats in Yaxley with an extended lease were valued about £280,000. The average amount of ground rent was £45 billed quarterly. The lease end date was on 17 August 2096. Taking into account 70 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.