Why you should commence your Long Eaton lease extension

Why you should start your Long Eaton lease extension today:

Increase your lease and increase your Long Eaton property value

The market value of a leasehold property in Long Eaton is impacted by how long the lease has remaining. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that all matters can be concluded ahead of the 80 year threshold. Leasehold Reform legislation entitles Long Eaton qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.

Lenders may not issue a mortgage on a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold property. Many will simply not lend at all once an unexpired lease term slips lower than a specified unexpired lease term. Many Lending institutions will not regard property with a remaining below seventy years as acceptable security. As well as this being important when selling, it is also relevant where you are wanting to refinance your Long Eaton property.

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

Lease extensions in Long Eaton can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Long Eaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Long Eaton Lease Extension Example Cases:

Kayleigh, Long Eaton, Derbyshire,

Subsequent to unsuccessful negotiations with the landlord of her basement apartment in Long Eaton, Kayleigh started the lease extension process just as her lease was approaching the critical 80-year deadline. The transaction was concluded in May 2006. The freeholder’s costs were restricted to slightly above 700 pounds.

Long Eaton case:

In 2012 we were contacted by Mr and Mrs. Y Hernández who, having bought a basement flat in Long Eaton in January 2002. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparable flats in Long Eaton with a long lease were worth £275,000. The average amount of ground rent was £65 invoiced annually. The lease end date was in 2094. Having 68 years as a residual term we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.

Long Eaton case:

Last year we were approach by Mr and Mrs. I Michel , who completed a studio flat in Long Eaton in July 2011. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Similar homes in Long Eaton with 100 year plus lease were in the region of £208,600. The mid-range amount of ground rent was £60 billed yearly. The lease lapsed on 16 January 2083. Taking into account 57 years remaining we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus expenses.