Main reasons to commence your Braintree lease extension

Why you should start your Braintree lease extension today:

Increase your lease and increase your Braintree property value

Braintree leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Braintree will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

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

Lending institutions may decide not to loan monies with a short lease

Mortgage lenders have set criteria when loaning funds secured on leasehold homes. Many will simply refuse lend at all once the remaining lease term goes lower than a certain unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than seventy years as acceptable security. In addition to this being important when selling, it is also relevant if you are seeking to refinance your Braintree property.

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

Using our service gives you increased control over the value of your Braintree leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Braintree Lease Extension Case Summaries:

Lucy, Braintree, Essex,

Following lengthy negotiations with the freeholder of her studio flat in Braintree, Lucy initiated the lease extension process just as her lease was approaching the all-important eighty-year mark. The lease extension completed in June 2007. The landlord’s costs were kept to an absolute minimum.

Braintree case:

Last Spring we were approach by Mr and Mrs. P Davies , who purchased a first floor apartment in Braintree in January 2005. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative homes in Braintree with 100 year plus lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease finished on 16 September 2096. Considering the 70 years remaining we approximated the premium to the landlord for the lease extension to be within £10,500 and £12,000 not including expenses.

Braintree case:

Ms Melissa Smith took over the lease of a first floor apartment in Braintree in February 2008. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative premises in Braintree with an extended lease were in the region of £246,800. The average ground rent payable was £60 billed yearly. The lease ran out on 5 March 2076. Considering the 50 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of expenses.