Top reasons for Dagenham lease extension

Top reasons for lease extension now:

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

As the the remaining lease term of a Dagenham domestic lease diminished so does its value and therefore the value of your property. If the lease has, in excess of one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Dagenham will qualify for this right; however a conveyancer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

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

Leasehold premises in Dagenham with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies will not finance a property on a short lease

The trend since 2008 has been for banks to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically lenders would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Dagenham?

Lease extensions in Dagenham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Dagenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Dagenham Lease Extension Example Cases:

Alex, Dagenham, London

In 2014 Alex, started to get near to the 80-year mark with the lease on his leasehold apartment in Dagenham. Having purchased his property 19 years ago, the unexpired term was of minimal concern. by good luck, he became aware that he needed to take action soon on a lease extension. Alex extended the lease just under the wire in July. Alex and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If the lease had descended below eighty years, the sum would have escalated by at least £1,150.

Dagenham case:

Mrs T Cox completed a newly refurbished flat in Dagenham in September 1997. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Identical properties in Dagenham with 100 year plus lease were in the region of £295,000. The average ground rent payable was £50 collected per annum. The lease elapsed in 2100. Given that there were 75 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.