Why you should commence your Battlesbridge lease extension

Top reasons for lease extension now:

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

Battlesbridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Battlesbridge enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Battlesbridge you must check if your lease has between seventy and 90 years remaining. There are good reasons why a Battlesbridge flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold premises in Battlesbridge with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may not finance a property with a short lease

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

The conveyancers that we work with procure Battlesbridge 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 conveyancing solicitor we work with provide it.

Battlesbridge Lease Extension Case Studies:

Jacob, Battlesbridge, Essex

In recent months Jacob, started to get near to the 80-year threshold with the lease on his ground floor flat in Battlesbridge. In buying his home two decades ago, the lease term was of little importance. Fortunately, he noticed he needed to take action soon on a lease extension. Jacob was able to extend his lease at the eleventh hour last August. Jacob and the freeholder eventually agreed on a premium of £5,000 . If the lease had gone below eighty years, the amount would have gone up by a minimum £1,025.

Battlesbridge case:

In 2010 we were phoned by Mrs Katie Alexander who, having purchased a ground floor flat in Battlesbridge in September 2010. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparable homes in Battlesbridge with a long lease were worth £166,400. The average ground rent payable was £60 collected quarterly. The lease lapsed in 2080. Taking into account 54 years outstanding we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including expenses.

Battlesbridge case:

Last year we were phoned by Mr and Mrs. P Moreau , who owned a first floor flat in Battlesbridge in May 2009. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Battlesbridge with 100 year plus lease were in the region of £232,800. The average ground rent payable was £45 collected quarterly. The lease end date was in 2091. Given that there were 65 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.