Loughton leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Flat owners in Loughton will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Loughton with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander |
The conveyancers that we work with undertake Loughton 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.
Off the back of lengthy discussions with the landlord of her first floor flat in Loughton, Sarah commenced the lease extension process as the 80 year mark was rapidly nearing. The transaction completed in February 2011. The landlord’s fees were kept to an absolute minimum.
Last Christmas we were contacted by Dr Leon Rivera , who acquired a basement flat in Loughton in June 1999. We are asked if we could approximate the price would be for a 90 year lease extension. Similar residencies in Loughton with a long lease were worth £200,800. The average amount of ground rent was £65 billed annually. The lease expired on 5 January 2086. Taking into account 60 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Loughton residence is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case affected 2 flats. The remaining number of years on the lease was 69.26 years.