Why you should commence your Ardleigh Green lease extension

Top reasons for lease extension now:

A Ardleigh Green leasehold property depreciates with the years remaining on the lease.

For those whose Ardleigh Green flat is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.

Ardleigh Green property with a lease extension has roughly the same value as a freehold

Leasehold properties in Ardleigh Green with in excess of 100 years left 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

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

The propensity since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Ardleigh Green lease extension solicitors or enfranchisement solicitors

The lawyers that we work with procure Ardleigh Green 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.

Ardleigh Green Lease Extension Example Cases:

Mason, Ardleigh Green, London

In 2014 Mason, came seriously near to the eighty-year mark with the lease on his one bedroom apartment in Ardleigh Green. Having bought his flat 19 years previously, the length of the lease was of minimal concern. Fortunately, he noticed he needed to take action soon on a lease extension. Mason arranged for a lease extension just ahead of time last September. Mason and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £1,075.

Ardleigh Green case:

Mr and Mrs. S Morel completed a one bedroom flat in Ardleigh Green in May 1999. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Similar flats in Ardleigh Green with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease ran out in 2103. Taking into account 77 years remaining we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.