Why you should commence your Braintree lease extension

Top reasons for lease extension now:

Increase your lease and increase your Braintree property value

The value of Braintree leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is less than eighty years

An extended lease is almost the same value as a freehold

Leasehold properties in Braintree with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not issue a mortgage with a short lease

Banks and Building Societies have set criteria when lending monies charged on leasehold homes. Many will simply refrain from lending at all once the residual lease term drops under a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below seventy years as acceptable security. As well as this being important when selling, it is also relevant if you are wanting to remortgage your Braintree property.

Why use us for your lease extension in Braintree?

Regardless of whether you are a tenant or a landlord in Braintree,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Braintree valuers.

Braintree Lease Extension Example Cases:

Aiden, Braintree, Essex,

Aiden owned a high value apartment in Braintree being sold with a lease of fraction over 72 years remaining. Aiden informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert legal guidance and secured satisfactory deal informally and sell the flat.

Braintree case:

Mr and Mrs. I Mercier purchased a basement flat in Braintree in January 2006. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Braintree with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease concluded in 2100. Having 74 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.

Braintree case:

Last Summer we were approach by Mr Hunter Gunderson , who acquired a one bedroom flat in Braintree in August 1995. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical homes in Braintree with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 billed monthly. The lease ended on 26 September 2080. Taking into account 54 years unexpired we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.