Main reasons to commence your Clayhall lease extension

Why you should commence your Clayhall lease extension today:

Increase your lease and increase your Clayhall property value

The market value of a leasehold property in Clayhall is impacted by how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed well before the 80 year threshold. Current legislation enables Clayhall qualifying lessees to an additional term of 90 years over and above the remaining term, at a notional rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lenders may decide not to finance a property on a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now require flats to have at least sixty if not seventy years remaining once the mortgage has expired. Considering a number of flats in Clayhall were built in the fifties, sixties and seventies as a result many now need to be extended if they wish to obtain a mortgage.

What makes us experts in Clayhall lease extensions?

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

Clayhall Lease Extension Example Cases:

Alice, Clayhall, Essex,

Trailing unsuccessful negotiations with the freeholder of her studio apartment in Clayhall, Alice started the lease extension process as the 80 year threshold was swiftly nearing. The transaction completed in May 2009. The landlord’s charges were negotiated to approximately 650 pounds.

Clayhall case:

In 2011 we were called by Mr and Mrs. O Bennett who, having bought a ground floor apartment in Clayhall in February 1996. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable flats in Clayhall with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 collected yearly. The lease concluded in 2083. Given that there were 57 years unexpired we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus legals.