Why you should commence your Dagenham lease extension

Why you should start your Dagenham lease extension today:

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

With a residential leasehold property in Dagenham, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years left. Leasehold owners in Dagenham with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has under 80 years outstanding, under the relevant statute the landlord can calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.

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

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.

Lenders may decide not to loan monies with a short lease

Mortgage companies do not like short residential leases. You are likely to encounter difficulties where you need to sell your flat in Dagenham if the unexpired lease term is less than the criteria set by the majority of mortgage companies. Different lenders have varying requirements but on the whole theyrequire an unexpired term of at least seventy years.

Why use us for your lease extension in Dagenham?

The conveyancing solicitors that we work with undertake Dagenham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Dagenham Lease Extension Case Studies:

Sam, Dagenham, London,

Sam owned a 2 bedroom flat in Dagenham on the market with a lease of fraction over 72 years left. Sam informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Dagenham case:

Mr B Thompson completed a purpose-built apartment in Dagenham in March 1998. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable flats in Dagenham with an extended lease were valued around £171,800. The average ground rent payable was £55 invoiced quarterly. The lease termination date was in 2076. Considering the 50 years left we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of fees.