Main reasons to start your Little Ilford lease extension

Why you should commence your Little Ilford lease extension today:

A Little Ilford lease depreciates with the years remaining on the lease.

Little Ilford leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Little Ilford will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.

Lenders may not loan monies with a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly below seventy years as they are regarded as inadequate for lending purposes.

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

The conveyancers that we work with handle Little Ilford 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 conveyancer we work with provide it.

Little Ilford Lease Extension Case Summaries:

Daniel, Little Ilford, London

In 2014 Daniel, started to get close to the eighty-year mark with the lease on his leasehold apartment in Little Ilford. Having bought his flat two decades ago, the length of the lease was of minimal bearing. Fortunately, he became aware that he needed to take action soon on a lease extension. Daniel was able to extend his lease just under the wire in June. Daniel and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If the lease had slipped lower than eighty years, the premium would have become more exhorbitant by at least £1,050.

Little Ilford case:

Last month we were contacted by Ms W Howard , who owned a garden apartment in Little Ilford in October 1997. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical flats in Little Ilford with a long lease were in the region of £280,000. The average amount of ground rent was £45 collected annually. The lease concluded on 1 July 2096. Having 70 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.