Why you should start your Mersea Island lease extension

Why you should commence your Mersea Island lease extension today:

A Mersea Island lease depreciates with the years remaining on the lease.

Mersea Island residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.

Mersea Island property with a lease extension is almost the same value as a freehold

Leasehold residencies in Mersea Island with over one hundred years outstanding on the lease are often referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Lenders will not lend with a short lease

Lenders are really restricting their approach as regards to homes in Mersea Island with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus narrowing your market.

What makes us experts in Mersea Island lease extensions?

Retaining our service will provide you increased control over the value of your Mersea Island leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Mersea Island Lease Extension Case Studies:

Henry, Mersea Island, Essex

Last October Henry, started to get close to the eighty-year threshold with the lease on his garden flat in Mersea Island. In buying his flat two decades ago, the length of the lease was of little concern. As luck would have it, he realised he would imminently be paying an escalated premium for Extending the lease. Henry extended the lease at the eleventh hour last August. Henry and the landlord subsequently agreed on a premium of £5,500 . If the lease had dipped lower than eighty years, the sum would have gone up by at least £875.

Mersea Island case:

Last Autumn we were contacted by Mrs V Pérez , who owned a purpose-built flat in Mersea Island in May 2009. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar flats in Mersea Island with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ran out on 17 May 2102. Given that there were 76 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.

Mersea Island case:

In 2011 we were called by Mr and Mrs. D Phillips who, having purchased a one bedroom flat in Mersea Island in November 2002. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Mersea Island with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 billed yearly. The lease finished in 2082. Considering the 56 years outstanding we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including professional charges.