Why you should start your Billericay lease extension

Why you should commence your Billericay lease extension today:

Increase your lease and increase your Billericay property value

Billericay residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lenders will not grant a mortgage with a short lease

Lending institutions have set criteria when loaning funds secured on leasehold property. Some will simply refrain from lending at all once the remaining lease term falls below a certain unexpired lease term. Many Mortgage lenders will not consider property with an unexpired term of less than seventy years suitable security. In addition to this being important when selling, it is also relevant if you are intending to refinance your Billericay home.

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

Irrespective of whether you are a tenant or a freeholder in Billericay,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Billericay valuers.

Billericay Lease Extension Case Studies:

Muhammad, Billericay, Essex

Two years ago Muhammad, came critically near to the eighty-year threshold with the lease on his first floor apartment in Billericay. In buying his property two decades ago, the unexpired term was of minimal bearing. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Muhammad was able to extend his lease just in the nick of time in July. Muhammad and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had slid to less than eighty years, the premium would have become more costly by a minimum £850.

Billericay case:

Mr and Mrs. N Martinez completed a purpose-built flat in Billericay in August 2003. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparative premises in Billericay with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 collected every twelve months. The lease end date was on 24 July 2085. Considering the 59 years remaining we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.

Billericay case:

Mrs Emma Murphy purchased a purpose-built flat in Billericay in February 2010. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar premises in Billericay with a long lease were worth £255,000. The average ground rent payable was £50 invoiced monthly. The lease concluded in 2096. Taking into account 70 years unexpired we approximated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 plus fees.