Top reasons for Braintree lease extension

Why you should commence your Braintree lease extension today:

Increase your lease and increase your Braintree property value

The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Braintree can extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Braintree lease extension. Postponing the costs today simply increases the amount you will eventually have to pay to extend the lease.

Braintree property with a lease extension is almost the same value as a freehold

Leasehold properties in Braintree with in excess of 100 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lenders may decide not to lend on a short lease

Mortgage companies do not grant a mortgage on short residential leases. You are likely to encounter difficulties where you wish to sell your flat in Braintree if the unexpired lease term is less than the criteria set by the majority of lenders. Different lenders have different criteria but on the whole they are looking for a minimum remaining lease term of seventy years.

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

Using our service gives you better control over the value of your Braintree leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers 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:

Aiden, Braintree, Essex

Last year Aiden, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Braintree. Having purchased his flat 19 years ago, the lease term was of no interest. Fortunately, he realised he needed to take steps soon on Extending the lease. Aiden was able to extend his lease at the eleventh hour in January. Aiden and the landlord subsequently settled on an amount of £5,500 . If he had missed the deadline, the premium would have become more exhorbitant by a minimum £1,000.

Braintree case:

Last Christmas we were called by Mr and Mrs. M Leroy , who purchased a one bedroom flat in Braintree in July 2005. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable properties in Braintree with a long lease were in the region of £193,400. The average amount of ground rent was £65 billed monthly. The lease ended on 1 August 2085. Given that there were 59 years remaining we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of fees.

Braintree case:

Last year we were phoned by Mr and Mrs. R Harris , who moved into a ground floor flat in Braintree in April 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Braintree with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 6 September 2096. Given that there were 70 years left we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 plus professional charges.