Main reasons to start your Barking lease extension

Main reasons to start your Barking lease extension today:

A Barking leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Barking depends on how long the lease has remaining. If it is close to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be addressed ahead of the 80 year mark. Leasehold Reform legislation entitles Barking qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold premises in Barking with in excess of one hundred years left 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders may decide not to loan monies with a short lease

Most banks have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under 75 years as they are regarded as inadequate for lending purposes.

Why use us for your lease extension in Barking?

Engaging our service gives you increased control over the value of your Barking leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Barking Lease Extension Case Studies:

Grace, Barking, Essex,

Subsequent to protracted correspondence with the freeholder of her leasehold flat in Barking, Grace commenced the lease extension process as the 80 year deadline was fast advancing. The lease extension was concluded in April 2009. The landlord’s charges were kept to an absolute minimum.

Barking case:

Ms J Morris owned a purpose-built flat in Barking in May 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparative premises in Barking with 100 year plus lease were worth £261,600. The average ground rent payable was £60 billed annually. The lease terminated in 2078. Having 52 years left we approximated the premium to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of fees.