Main reasons to start your Great Baddow lease extension

Top reasons for lease extension now:

A Great Baddow lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Great Baddow. Inevitably, the term of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Great Baddow have the legal entitlement to extend the lease for a further 90 years under legislation. Do give careful attention before delaying your Great Baddow lease extension. Holding off that expense now simply increases the price you will ultimately incur for a lease extension

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

Leasehold premises in Great Baddow with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not loan monies with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically banks 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 now have a minimum term of 75 years as standard.

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

Irrespective of whether you are a tenant or a landlord in Great Baddow,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Great Baddow valuers.

Great Baddow Lease Extension Example Cases:

Leon, Great Baddow, Essex

Half a year ago Leon, came dangerously close to the eighty-year threshold with the lease on his two bedroom apartment in Great Baddow. In buying his flat two decades ago, the unexpired term was of no bearing. Luckily, he noticed he needed to take action soon on a lease extension. Leon extended the lease at the eleventh hour last September. Leon and the landlord eventually settled on sum of £5,000 . If the lease had gone lower than eighty years, the price would have gone up by at least £1,100.

Great Baddow case:

In 2014 we were phoned by Mr and Mrs. R Ricardo who, having was assigned a lease of a studio apartment in Great Baddow in October 2011. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative properties in Great Baddow with an extended lease were valued around £193,400. The mid-range amount of ground rent was £65 billed yearly. The lease termination date was in 2085. Having 59 years outstanding we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including expenses.

Great Baddow case:

In 2014 we were contacted by Dr Jasmine Johnson who, having purchased a ground floor apartment in Great Baddow in October 2004. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparative residencies in Great Baddow with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease termination date was in 2096. Considering the 70 years left we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 exclusive of fees.