Why you should start your Laindon lease extension

Top reasons for lease extension now:

A Laindon lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Laindon. Clearly, the length of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Laindon have the legal entitlement to extend the lease for a further ninety years under legislation. Do give careful attention before delaying your Laindon lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension

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

It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Lenders may not grant a mortgage on a short lease

Nearly all mortgage companies will be unwilling to lend on a lease with less than 70 years left to run - although this varies between mortgage companies. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Laindon property being difficult to sell or refinance.

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

The conveyancers that we work with undertake Laindon 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.

Laindon Lease Extension Case Summaries:

Milo, Laindon, Essex,

Milo owned a 2 bedroom apartment in Laindon on the market with a lease of just over fifty eight years unexpired. Milo on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert advice and secured satisfactory deal informally and readily saleable.

Laindon case:

Ms Rosie Clarke acquired a first floor flat in Laindon in August 2001. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable properties in Laindon with an extended lease were in the region of £208,200. The average ground rent payable was £65 billed quarterly. The lease came to a finish in 2087. Having 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of expenses.

Laindon case:

Mrs K Norbert moved into a first floor apartment in Laindon in September 1997. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable homes in Laindon with 100 year plus lease were valued about £260,000. The average amount of ground rent was £50 collected monthly. The lease expiry date was on 2 April 2098. Considering the 72 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.