Main reasons to commence your Portslade lease extension

Top reasons for lease extension now:

Increase your lease and increase your Portslade property value

The nearer a domestic lease in Portslade nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner rather than later. Many flat owners in Portslade will qualify for this right; however a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

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

Leasehold residencies in Portslade with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may not loan monies with a short lease

Most banks have narrowed 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 seventy years as they are regarded as insufficient for lending purposes.

Why use us for your lease extension in Portslade?

The lawyers that we work with procure Portslade 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.

Portslade Lease Extension Case Summaries:

Niamh, Portslade, East Sussex,

In the wake of 6 months of lengthy negotiations with the freeholder of her basement flat in Portslade, Niamh commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The transaction was concluded in August 2014. The landlord’s costs were negotiated to slightly above four hundred pounds.

Portslade case:

Last Spring we were called by Dr Isabel Ali , who acquired a basement flat in Portslade in June 1995. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable residencies in Portslade with an extended lease were worth £191,400. The average amount of ground rent was £55 invoiced monthly. The lease concluded in 2080. Considering the 54 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus fees.

Portslade case:

Dr K Davies purchased a one bedroom flat in Portslade in August 1995. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparative residencies in Portslade with 100 year plus lease were valued about £295,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease expired on 19 May 2100. Given that there were 74 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.