Why you should start your Goffs Oak lease extension

Top reasons for lease extension now:

A Goffs Oak lease depreciates with the years remaining on the lease.

It’s a harsh truth that a Goffs Oak residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Goffs Oak property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Most flat owners in Goffs Oak will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.

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

It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders may not loan monies with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Goffs Oak lease extensions?

Retaining our service gives you better control over the value of your Goffs Oak leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Goffs Oak Lease Extension Example Cases:

Gabriel, Goffs Oak, Hertfordshire,

Gabriel was the the leasehold owner of a high value flat in Goffs Oak on the market with a lease of just over 59 years outstanding. Gabriel on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and secured an acceptable resolution informally and sell the property.

Goffs Oak case:

Last year we were called by Mr Sam François , who bought a first floor apartment in Goffs Oak in June 2007. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable residencies in Goffs Oak with a long lease were in the region of £255,000. The average ground rent payable was £50 billed monthly. The lease ended in 2096. Taking into account 70 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.

Goffs Oak case:

Last Winter we were called by Dr H Murphy , who completed a first floor apartment in Goffs Oak in August 2002. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Goffs Oak with 100 year plus lease were worth £246,800. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated in 2076. Given that there were 50 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of legals.