Top reasons for East Grinstead lease extension

Top reasons for lease extension now:

A East Grinstead lease depreciates with the years remaining on the lease.

East Grinstead residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.

An extended lease is almost the same value as a freehold

Leasehold properties in East Grinstead with in excess of 100 years remaining 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to lend on a short lease

Mortgage companies are really clamping down as regards to homes in East Grinstead with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus reducing the amount of prospective buyers.

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

Irrespective of whether you are a tenant or a landlord in East Grinstead,the lease extension solicitors 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 East Grinstead valuers.

East Grinstead Lease Extension Example Cases:

Andrew, East Grinstead, West Sussex,

Andrew was the the leasehold proprietor of a conversion flat in East Grinstead being sold with a lease of just over sixty years left. Andrew on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.

East Grinstead case:

In 2011 we were approached by Mr R Evans who, having purchased a one bedroom flat in East Grinstead in April 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparative flats in East Grinstead with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected annually. The lease expiry date was on 14 March 2104. Given that there were 78 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.

East Grinstead case:

Last Spring we were called by Ms Ella Rogers , who bought a newly refurbished flat in East Grinstead in May 2008. The question was if we could estimate the price would be to prolong the lease by 90 years. Similar properties in East Grinstead with 100 year plus lease were worth £186,000. The mid-range ground rent payable was £65 invoiced monthly. The lease ran out on 25 June 2084. Considering the 58 years outstanding we estimated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of costs.