Main reasons to start your Great Baddow lease extension

Top reasons for lease extension now:

Increase your lease and increase your Great Baddow property value

The re-sale value of a leasehold property in Great Baddow is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the lease extension process when the lease still has 82 years to run so that formalities can be concluded ahead of the 80 year threshold. Current legislation entitles Great Baddow qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold properties in Great Baddow with more than one hundred years unexpired on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not loan monies on a short lease

Banks and Building Societies have specific criteria when lending monies secured on leasehold property. Many will simply refrain from lending at all once an unexpired lease term slips beneath a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant where you are intending to remortgage your Great Baddow property.

Why use us for your lease extension in Great Baddow?

The conveyancers that we work with handle Great Baddow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Great Baddow Lease Extension Case Studies:

Phoebe, Great Baddow, Essex,

In the wake of eight months of unsuccessful discussions with the landlord of her purpose-built apartment in Great Baddow, Phoebe started the lease extension process just as her lease was nearing the critical eighty-year deadline. The transaction was concluded in March 2014. The freeholder’s charges were restricted to a tad over 450 GBP.

Great Baddow case:

In 2011 we were approached by Ms Aimee Hernández who, having bought a first floor apartment in Great Baddow in January 1996. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar premises in Great Baddow with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 collected quarterly. The lease lapsed on 5 October 2096. Given that there were 70 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 plus fees.

Great Baddow case:

In 2011 we were phoned by Mr and Mrs. B Hall who, having moved into a one bedroom flat in Great Baddow in February 1995. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparable homes in Great Baddow with a long lease were worth £246,800. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish in 2076. Considering the 50 years left we calculated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including expenses.