Main reasons to start your Barkingside lease extension

Main reasons to commence your Barkingside lease extension today:

A Barkingside lease depreciates with the years remaining on the lease.

Barkingside leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Barkingside residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Barkingside you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.

Lenders may decide not to grant a mortgage on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically banks were content with twenty years plus the term of the loan - typically fifty 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.

What makes us experts in Barkingside lease extensions?

Lease extensions in Barkingside can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Barkingside lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Barkingside Lease Extension Case Studies:

Kyle, Barkingside, Essex

Last Winter Kyle, started to get near to the 80-year threshold with the lease on his ground floor flat in Barkingside. Having bought his home 19 years previously, the lease term was of minimal bearing. As luck would have it, he recognised he needed to take action soon on Extending the lease. Kyle arranged for a lease extension just ahead of time last January. Kyle and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had descended below 80 years, the price would have gone up by at least £900.

Barkingside case:

Last Spring we were e-mailed by Mr H Patel , who completed a basement flat in Barkingside in October 2010. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar residencies in Barkingside with a long lease were valued about £250,000. The mid-range amount of ground rent was £50 invoiced annually. The lease terminated in 2095. Taking into account 69 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.