Why you should commence your Walton on the Naze lease extension

Main reasons to start your Walton on the Naze lease extension today:

A Walton on the Naze lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Walton on the Naze. Clearly, the term of lease left shortens over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Walton on the Naze have the right to extend the lease for an additional 90 years under statute. You should give careful attention before delaying your Walton on the Naze lease extension. Holding off the cost now likely increases the price you will eventually have to pay for a lease extension

An extended lease is almost the same value as a freehold

Leasehold premises in Walton on the Naze with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to loan monies 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 property with shorter lease terms, particularly below 75 years as they are deemed to be inadequate for lending purposes.

Get in touch with one of our Walton on the Naze lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you increased control over the value of your Walton on the Naze leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Walton on the Naze Lease Extension Example Cases:

Poppy, Walton on the Naze, Essex,

Following unsuccessful correspondence with the freeholder of her first floor apartment in Walton on the Naze, Poppy commenced the lease extension process just as her lease was nearing the critical eighty-year threshold. The transaction was finalised in April 2009. The landlord’s costs were kept to an absolute minimum.

Walton on the Naze case:

In 2014 we were phoned by Mr Jonathan Roberts who, having owned a newly refurbished apartment in Walton on the Naze in February 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Walton on the Naze with an extended lease were valued around £257,800. The mid-range ground rent payable was £65 collected annually. The lease ended on 4 April 2091. Given that there were 65 years outstanding we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.

Walton on the Naze case:

In 2011 we were contacted by Mrs Y Green who, having owned a first floor flat in Walton on the Naze in October 2008. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable premises in Walton on the Naze with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 collected quarterly. The lease finished on 6 January 2080. Considering the 54 years unexpired we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus costs.