Main reasons to commence your Danbury lease extension

Main reasons to commence your Danbury lease extension today:

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

Unfortunately that a Danbury residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Danbury property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Danbury will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lenders will not grant a mortgage on a short lease

Mortgage companies do not like short residential leases. You most probably experience difficulties if you wish to sell your flat in Danbury if the remaining term of your lease is below the criteria set by most mortgage companies. Different mortgage companies have different requirements but in the main they are looking for a minimum remaining lease term of seventy years.

Get in touch with one of our Danbury lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with procure Danbury 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 conveyancer we work with provide it.

Danbury Lease Extension Example Cases:

Charlotte, Danbury, Essex,

Off the back of protracted correspondence with the landlord of her studio flat in Danbury, Charlotte commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work completed in April 2005. The landlord’s costs were restricted to approximately 450 GBP.

Danbury case:

In 2013 we were contacted by Mr and Mrs. J James who, having moved into a studio flat in Danbury in November 1996. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Danbury with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished on 4 November 2101. Having 75 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.

Danbury case:

In 2010 we were e-mailed by Mr I François who, having was assigned a lease of a newly refurbished flat in Danbury in November 2008. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Similar premises in Danbury with an extended lease were worth £168,800. The average amount of ground rent was £60 collected per annum. The lease expired in 2081. Having 55 years left we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.