Why you should commence your Walton on the Naze lease extension

Top reasons for lease extension now:

Increase your lease and increase your Walton on the Naze property value

The market value of a leasehold property in Walton on the Naze depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded in advance of the 80 year cut off point. Leasehold Reform legislation enables Walton on the Naze qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to issue a mortgage with a short lease

Most banks and building societies will not grant a mortgage on a lease with less than seventy years unexpired - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Walton on the Naze property becoming difficult to dispose of or remortgage.

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

Regardless of whether you are a tenant or a landlord in Walton on the Naze,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 Walton on the Naze valuers.

Walton on the Naze Lease Extension Example Cases:

Omar, Walton on the Naze, Essex,

Omar owned a studio flat in Walton on the Naze being sold with a lease of fraction over fifty eight years outstanding. Omar informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Omar to invoke his statutory right. Omar obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Walton on the Naze case:

Mrs N Garcia completed a basement flat in Walton on the Naze in March 2001. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative premises in Walton on the Naze with an extended lease were in the region of £171,800. The average amount of ground rent was £55 collected every twelve months. The lease elapsed on 12 October 2076. Taking into account 50 years as a residual term we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of legals.

Walton on the Naze case:

Last Summer we were e-mailed by Dr Noah Petit , who owned a studio flat in Walton on the Naze in November 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Walton on the Naze with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease elapsed in 2096. Given that there were 70 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.