Why you should commence your Longfield lease extension

Top reasons for lease extension now:

A Longfield leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Longfield residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Longfield property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining drops under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Longfield will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Longfield with over 100 years outstanding 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders may not finance a property with a short lease

Most banks and building societies require a lengthy amount of time remaining on a leasehold property before they will contemplate providing a mortgage on it. Regardless of whether you require a mortgage, you should keep in mind that it is likely that someone intending to purchase your property in the future might well do, so where they are unable to secure a mortgage, then the financial worth of your property will likely be adversely impacted. In the last decade most mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

Regardless of whether you are a tenant or a landlord in Longfield,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Longfield valuers.

Longfield Lease Extension Case Studies:

Zoe, Longfield, Kent,

After lengthy negotiations with the landlord of her studio apartment in Longfield, Zoe initiated the lease extension process just as the lease was approaching the critical eighty-year mark. The transaction completed in July 2009. The landlord’s charges were negotiated to a tad over 700 GBP.

Longfield case:

In 2009 we were contacted by Mr and Mrs. N Hernández who, having bought a ground floor flat in Longfield in June 2002. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative premises in Longfield with 100 year plus lease were valued about £218,000. The average ground rent payable was £45 invoiced yearly. The lease expired in 2089. Considering the 63 years as a residual term we estimated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of expenses.

Longfield case:

In 2011 we were approached by Ms Georgina Richardson who, having owned a one bedroom flat in Longfield in July 2011. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Longfield with a long lease were worth £265,000. The average ground rent payable was £50 billed quarterly. The lease expired in 2100. Considering the 74 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.