Top reasons for Loughton lease extension

Top reasons for lease extension now:

A Loughton leasehold property depreciates with the years remaining on the lease.

Loughton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Loughton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Loughton you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.

Lending institutions may not lend with a short lease

Most mortgage lenders will not grant a mortgage on a lease with under 70 years left to run - although this varies between mortgage companies. A buyer will no doubt encounter difficulties in obtaining a mortgage and this will result in your Loughton property being difficult to sell or refinance.

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

Irrespective of whether you are a tenant or a landlord in Loughton,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 Loughton valuers.

Loughton Lease Extension Example Cases:

Harry, Loughton, Essex

Last Christmas Harry, started to get near to the 80-year mark with the lease on his two bedroom apartment in Loughton. In buying his flat two decades ago, the length of the lease was of minimal relevance. Luckily, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Harry arranged for a lease extension just under the wire in June. Harry and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had dropped lower than 80 years, the sum would have become more exhorbitant by a minimum £1,050.

Loughton case:

Mrs Paige Peterson moved into a studio apartment in Loughton in January 2011. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparable residencies in Loughton with a long lease were worth £245,000. The average amount of ground rent was £50 invoiced annually. The lease concluded on 26 July 2094. Having 68 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.