Top reasons for Upminster Bridge lease extension

Main reasons to start your Upminster Bridge lease extension today:

A Upminster Bridge leasehold property depreciates with the years remaining on the lease.

With a long leasehold property in Upminster Bridge, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Leasehold owners in Upminster Bridge with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has less than eighty years remaining, under the relevant legislation the freeholder can calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold residencies in Upminster Bridge with more than 100 years unexpired 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may not lend with a short lease

The trend since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Engaging our service gives you increased control over the value of your Upminster Bridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Upminster Bridge Lease Extension Example Cases:

Harrison, Upminster Bridge, London,

Harrison was the the leasehold proprietor of a 2 bedroom flat in Upminster Bridge being sold with a lease of a little over 61 years unexpired. Harrison informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.

Upminster Bridge case:

In 2012 we were contacted by Mr and Mrs. I García who, having owned a recently refurbished flat in Upminster Bridge in June 2010. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparable homes in Upminster Bridge with an extended lease were valued around £218,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2085. Considering the 59 years remaining we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 not including professional charges.