Main reasons to commence your Arlesey lease extension

Top reasons for lease extension now:

Increase your lease and increase your Arlesey property value

There is no doubt about it a leasehold property in Arlesey is a wasting asset as a result of the diminishing lease term. Where the lease has, more than one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Arlesey will qualify for this right; nevertheless a lawyer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

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

It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not finance a property on a short lease

The trend since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically lenders were content with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Arlesey?

Irrespective of whether you are a tenant or a landlord in Arlesey,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Arlesey valuers.

Arlesey Lease Extension Case Studies:

Shannon, Arlesey, Bedfordshire,

After protracted negotiations with the landlord of her one bedroom apartment in Arlesey, Shannon commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The lease extension was concluded in January 2015. The landlord’s fees were kept to an absolute minimum.

Arlesey case:

In 2009 we were called by Dr Lydia Clark who, having bought a studio apartment in Arlesey in March 2003. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable properties in Arlesey with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed annually. The lease ended on 21 October 2103. Considering the 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.

Arlesey case:

Last year we were approach by Mr Nathaniel Davis , who acquired a garden apartment in Arlesey in July 2005. The question was if we could approximate the premium would be for a 90 year lease extension. Identical properties in Arlesey with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 invoiced yearly. The lease ran out in 2083. Considering the 57 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus fees.