Top reasons for Leigh On Sea lease extension

Top reasons for lease extension now:

A Leigh On Sea leasehold property depreciates with the years remaining on the lease.

Leigh On Sea leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. Leasehold owners in Leigh On Sea will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.

Leigh On Sea property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Leigh On Sea with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may decide not to finance a property on a short lease

The trend since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with 25 years plus the term of the loan - typically 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 standard.

What makes us experts in Leigh On Sea lease extensions?

Engaging our service gives you better control over the value of your Leigh On Sea leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Leigh On Sea Lease Extension Example Cases:

Millie, Leigh On Sea, Essex,

After unsuccessful negotiations with the freeholder of her first floor apartment in Leigh On Sea, Millie commenced the lease extension process just as the lease was nearing the crucial 80-year deadline. The transaction completed in July 2012. The landlord’s fees were kept to an absolute minimum.

Leigh On Sea case:

In 2014 we were called by Dr A Walker who, having acquired a ground floor flat in Leigh On Sea in January 2010. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar premises in Leigh On Sea with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 billed monthly. The lease ran out on 10 October 2079. Having 53 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 not including costs.

Leigh On Sea case:

In 2014 we were called by Mrs S Hall who, having took over the lease of a one bedroom apartment in Leigh On Sea in July 2000. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar residencies in Leigh On Sea with an extended lease were worth £220,400. The average ground rent payable was £45 collected per annum. The lease terminated in 2090. Taking into account 64 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of costs.