Why you should start your Gillingham lease extension

Main reasons to commence your Gillingham lease extension today:

Increase your lease and increase your Gillingham property value

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Gillingham. Clearly, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying leaseholders in Gillingham have the legal entitlement to extend the lease for an additional 90 years under legislation. Please give due deliberation before delaying your Gillingham lease extension. Holding off that expense now only increases the price you will ultimately incur for a lease extension

Gillingham property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.

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

The definition of a short lease varies by mortgage company, yet banks and building societies start to become jittery at around 75 years. This will be problematic once you come to market or remortgage your property as it will be practically unmortgageable. Even though you may have no immediate intention to sell but when you do your purchaser must hold off for 2 years before being able to exercise the right to a an extension to the lease.

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

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

Gillingham Lease Extension Example Cases:

David, Gillingham, Kent

In recent months David, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Gillingham. Having bought his home two decades ago, the unexpired term was of little bearing. As luck would have it, he realised he would imminently be paying an inflated amount for a lease extension. David extended the lease at the eleventh hour in March. David and the freeholder via the management company eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have gone up by a minimum £1,075.

Gillingham case:

Dr Anna Richardson owned a one bedroom flat in Gillingham in August 2002. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative premises in Gillingham with an extended lease were valued around £166,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease ended in 2080. Given that there were 54 years unexpired we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus legals.

Gillingham case:

Last Summer we were e-mailed by Mr and Mrs. L Harris , who completed a ground floor flat in Gillingham in February 2011. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar homes in Gillingham with an extended lease were in the region of £227,800. The average amount of ground rent was £45 collected annually. The lease ran out in 2091. Having 65 years remaining we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.