Why you should start your Arlesey lease extension

Main reasons to commence your Arlesey lease extension today:

Increase your lease and increase your Arlesey property value

Arlesey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Arlesey residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Arlesey you must check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Arlesey flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is put in place without delay

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

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to issue a mortgage on a short lease

Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are deemed to be insufficient for lending purposes.

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

The lawyers that we work with procure Arlesey 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.

Arlesey Lease Extension Example Cases:

Daniel, Arlesey, Bedfordshire

In recent months Daniel, started to get near to the 80-year threshold with the lease on his leasehold flat in Arlesey. In buying his home two decades ago, the unexpired term was of no significance. As luck would have it, he noticed he would soon be paying an inflated amount for Extending the lease. Daniel was able to extend his lease at the eleventh hour in January. Daniel and the landlord who owned the flat above in the end settled on an amount of £5,500 . If the lease had dipped to less than 80 years, the premium would have become more costly by at least £950.

Arlesey case:

Last month we were contacted by Mrs Isabella Evans , who moved into a first floor flat in Arlesey in May 2012. The question was if we could estimate the price would be for a 90 year lease extension. Identical premises in Arlesey with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired on 1 May 2095. Having 69 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.

Arlesey case:

Last Autumn we were phoned by Ms Francesca González , who completed a ground floor flat in Arlesey in April 2012. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative residencies in Arlesey with an extended lease were in the region of £290,000. The average ground rent payable was £60 collected quarterly. The lease concluded in 2106. Given that there were 80 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.