Why you should start your Colchester lease extension

Top reasons for lease extension now:

A Colchester lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Colchester. Inevitably, the period of lease left shortens over time. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Colchester have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give due consideration before putting off your Colchester lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension

Colchester property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to grant a mortgage with a short lease

Banks and building societies do not like short residential leases. You most probably experience problems where you need to sell your flat in Colchester if the remaining term of your lease is below the criteria set by most banks and building societies. Different lenders have different criteria but on the whole they are looking for an unexpired term of at least 65 years.

Why use us for your lease extension in Colchester?

Irrespective of whether you are a tenant or a landlord in Colchester,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Colchester valuers.

Colchester Lease Extension Example Cases:

Ella, Colchester, Essex,

After protracted correspondence with the freeholder of her leasehold flat in Colchester, Ella started the lease extension process as the eighty year mark was quickly nearing. The legal work was finalised in March 2006. The freeholder’s costs were restricted to slightly above 650 pounds.

Colchester case:

Dr F Phillips was assigned a lease of a basement apartment in Colchester in February 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Colchester with an extended lease were valued about £242,600. The mid-range amount of ground rent was £45 collected per annum. The lease finished on 18 March 2093. Taking into account 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of costs.

Colchester case:

Mr and Mrs. N Fournier took over the lease of a first floor flat in Colchester in October 2011. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Colchester with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease terminated on 14 October 2104. Having 78 years left we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.