Top reasons for Barkingside lease extension

Top reasons for lease extension now:

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

When it comes to residential leasehold premises in Barkingside, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Residents in Barkingside with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years outstanding, under the current statute the landlord can calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

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

Leasehold residencies in Barkingside with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to issue a mortgage on a short lease

The propensity since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

Retaining our service gives you better control over the value of your Barkingside leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Barkingside Lease Extension Example Cases:

Jennifer, Barkingside, Essex,

In the wake of 9 months of protracted correspondence with the freeholder of her one bedroom flat in Barkingside, Jennifer commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The legal work was finalised in April 2012. The freeholder’s costs were negotiated to approximately 550 GBP.

Barkingside case:

In 2012 we were called by Mr N Khan who, having bought a ground floor apartment in Barkingside in August 1997. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Barkingside with a long lease were in the region of £183,600. The average amount of ground rent was £65 billed monthly. The lease lapsed in 2083. Taking into account 57 years unexpired we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of expenses.