Why you should commence your Gillingham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Gillingham property value

The value of Gillingham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is below than 80 years

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

Leasehold premises in Gillingham with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders will not loan monies on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This will be problematic as and when you wish to dispose of or refinance your property as it will be effectively unmortgageable. You may have no imminent desire to sell but when you do your purchaser will need to wait two years before being able to initiate the legal procedures for a lease extension.

What makes us experts in Gillingham lease extensions?

Lease extensions in Gillingham can be a difficult process. We recommend you obtain professional help from a conveyancer 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 procuring Gillingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Gillingham Lease Extension Example Cases:

Archie, Gillingham, Kent,

Archie was the the leasehold owner of a conversion apartment in Gillingham being sold with a lease of a little over 72 years left. Archie informally approached his landlord being a well known local-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 £50 per annum. No ground rent would be payable on a lease extension were Archie to exercise his statutory right. Archie procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Gillingham case:

In 2010 we were approached by Dr Poppy Ricardo who, having was assigned a lease of a purpose-built apartment in Gillingham in March 2003. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable premises in Gillingham with an extended lease were in the region of £235,200. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed in 2092. Having 66 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.

Gillingham case:

Last Winter we were phoned by Mr and Mrs. J Wood , who moved into a purpose-built flat in Gillingham in July 2009. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparable premises in Gillingham with an extended lease were valued about £280,000. The average ground rent payable was £55 billed monthly. The lease expired on 16 January 2103. Given that there were 77 years outstanding we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.