Main reasons to commence your Lampeter lease extension

Top reasons for lease extension now:

Increase your lease and increase your Lampeter property value

The re-sale value of a leasehold property in Lampeter is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that formalities can be finalised ahead of the 80 year threshold. Current legislation enables Lampeter qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a nominal rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not finance a property with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

Regardless of whether you are a tenant or a freeholder in Lampeter,the lease extension experts 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 Lampeter valuers.

Lampeter Lease Extension Case Summaries:

Tyler, Lampeter, Aberaeron,

Tyler owned a 2 bedroom flat in Lampeter on the market with a lease of just over fifty eight years left. Tyler informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.

Lampeter case:

Ms Lucy Kelly bought a first floor flat in Lampeter in September 2007. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Similar residencies in Lampeter with an extended lease were worth £198,800. The average ground rent payable was £55 billed per annum. The lease concluded on 26 August 2081. Taking into account 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.

Lampeter case:

Last Autumn we were phoned by Mr and Mrs. N Lefebvre , who owned a garden apartment in Lampeter in June 1996. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative premises in Lampeter with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated on 28 March 2101. Taking into account 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.