Why you should commence your Brentwood lease extension

Why you should start your Brentwood lease extension today:

A Brentwood leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Brentwood depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed ahead of the eighty year mark. Leasehold Reform legislation enables Brentwood qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold residencies in Brentwood with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may not issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become nervous at around 75 years. This may cause difficulties as and when you need to dispose of or refinance your flat as it will be practically unmortgageable. Even though you might not have an imminent desire to sell but when you do your purchaser will have to hold off for two years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in Brentwood?

Engaging our service will provide you better control over the value of your Brentwood leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.

Brentwood Lease Extension Case Studies:

Riley, Brentwood, Essex,

Riley owned a high value flat in Brentwood being marketed with a lease of fraction over 59 years outstanding. Riley on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Riley to invoke his statutory right. Riley procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.

Brentwood case:

Last month we were e-mailed by Ms Lucy Vincent , who completed a studio apartment in Brentwood in May 2007. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Brentwood with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish in 2101. Taking into account 75 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.