Why you should commence your Mersea Island lease extension

Main reasons to start your Mersea Island lease extension today:

Increase your lease and increase your Mersea Island property value

The value of Mersea Island leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the remaining term is below than eighty years

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not lend on a short lease

Most mortgage lenders have narrowed their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are considered to be unacceptable for lending purposes.

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

The conveyancers that we work with undertake Mersea Island 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.

Mersea Island Lease Extension Case Studies:

James, Mersea Island, Essex

Two years ago James, came perilously close to the eighty-year threshold with the lease on his one bedroom flat in Mersea Island. In buying his home 19 years ago, the lease term was of minimal interest. by good luck, it dawned on him that he needed to take steps soon on a lease extension. James was able to extend his lease just under the wire last May. James and the freeholder via the managing agents eventually agreed on an amount of £5,000 . If he had missed the deadline, the figure would have gone up by a minimum £900.

Mersea Island case:

Last Summer we were approach by Mr and Mrs. N Allen , who purchased a garden apartment in Mersea Island in August 2003. We are asked if we could estimate the price would be for a ninety year lease extension. Similar properties in Mersea Island with an extended lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease finished in 2098. Given that there were 72 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.

Mersea Island case:

Last Christmas we were e-mailed by Dr Jayden Girard , who purchased a first floor apartment in Mersea Island in September 1997. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative flats in Mersea Island with an extended lease were valued around £256,600. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2078. Having 52 years left we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of professional charges.