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Why you should commence your Gants Hill lease extension


Why you should commence your Gants Hill lease extension today:

A Gants Hill lease depreciates with the years remaining on the lease.

Gants Hill leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Gants Hill will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.

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

It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.

Lenders may not issue a mortgage with a short lease

Most mortgage lenders have tightened lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are deemed to be inadequate for lending purposes.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
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.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
Yorkshire Building Society 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.

Why use us for your lease extension in Gants Hill?

Regardless of whether you are a tenant or a freeholder in Gants Hill,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gants Hill valuers.

Gants Hill Lease Extension Case Summaries:

Aimee, Gants Hill, Essex,

Off the back of unsuccessful discussions with the freeholder of her garden flat in Gants Hill, Aimee initiated the lease extension process as the eighty year deadline was fast nearing. The lease extension was finalised in August 2013. The landlord’s fees were kept to an absolute minimum.

Gants Hill case:

In 2010 we were e-mailed by Mr and Mrs. B González who, having acquired a studio flat in Gants Hill in February 2005. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative properties in Gants Hill with a long lease were valued around £250,400. The average amount of ground rent was £65 billed yearly. The lease terminated on 15 January 2089. Considering the 64 years left we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 plus legals.

Decision in Redbridge

An example of a Freehold Enfranchisement decision for a Gants Hill property is 59 & 59a Clarendon Gardens in February 2014. The Tribunals valuation for the freehold was £30,073.00 The unexpired term as at the valuation date was 65 and 61.