Stop! Your Lease Extension in Essington Could Be FREE

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Many leaseholders in Essington are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Essington has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Top reasons for Essington lease extension

Main reasons to commence your Essington lease extension today:

Increase your lease and increase your Essington property value

Essington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Essington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Essington you must see if your lease has between 70 and 90 years remaining. There are good reasons why a Essington flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay

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

It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Mortgage lenders will not finance a property with a short lease

Banks and Building Societies have specific criteria when lending funds secured on leasehold property. Some will simply not lend at all once the residual lease term slips under a certain unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than seventy years as acceptable security. In addition to this being important when selling, it is also relevant if you are seeking to refinance your Essington property.

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Godiva Mortgages A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Halifax Minimum 70 years from the date of the mortgage.

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

Irrespective of whether you are a tenant or a landlord in Essington,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Essington valuers.

Essington Lease Extension Case Studies:

Archie, Essington, Staffordshire,

Archie owned a conversion apartment in Essington being sold with a lease of a little over 59 years unexpired. Archie informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Archie to exercise his statutory right. Archie procured expert advice and secured an acceptable resolution informally and readily saleable.

Essington case:

Last year we were approach by Mr and Mrs. F Davis , who owned a basement apartment in Essington in September 2001. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Identical flats in Essington with a long lease were valued about £220,400. The average amount of ground rent was £45 invoiced quarterly. The lease elapsed on 24 August 2090. Given that there were 64 years unexpired we calculated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 not including expenses.

Essington case:

Mr and Mrs. T Torres bought a ground floor flat in Essington in August 1999. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Similar premises in Essington with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 invoiced per annum. The lease ran out on 4 February 2101. Taking into account 75 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.