Why you should commence your Benfleet lease extension

Top reasons for lease extension now:

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

Benfleet leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Benfleet enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Benfleet you would be well advised to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Benfleet leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay

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

Leasehold properties in Benfleet with in excess of one hundred years left 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not grant a mortgage with a short lease

Almost all mortgage companies require a lengthy amount of time remaining on a leasehold residence before they will contemplate providing a mortgage on it. Regardless of whether you require a mortgage, you should be aware that it is reasonable to assume that someone wishing to buy your property in the future might well do, so in the event that they are not able to obtain a mortgage, then the value of your property will likely be adversely impacted. In the last decade most mortgage lenders have increased the required minimum lease length that they are willing to accept

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

The conveyancers that we work with handle Benfleet 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.

Benfleet Lease Extension Example Cases:

Aiden, Benfleet, Essex,

Aiden owned a 2 bedroom flat in Benfleet being sold with a lease of a little over 61 years left. Aiden on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Benfleet case:

In 2009 we were approached by Ms D Williams who, having bought a ground floor apartment in Benfleet in October 1998. The dilemma was if we could estimate the price could be to prolong the lease by a further 90 years. Similar homes in Benfleet with 100 year plus lease were valued about £191,000. The average amount of ground rent was £65 invoiced quarterly. The lease expired on 3 April 2084. Taking into account 58 years remaining we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of fees.

Benfleet case:

In 2013 we were approached by Mr and Mrs. L Howard who, having took over the lease of a one bedroom apartment in Benfleet in March 2001. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Benfleet with an extended lease were in the region of £250,000. The average ground rent payable was £50 billed per annum. The lease came to a finish in 2095. Given that there were 69 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.