Why you should commence your Longfield lease extension

Top reasons for lease extension now:

Increase your lease and increase your Longfield property value

The market value of Longfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is below than 80 years

An extended lease is almost the same value as a freehold

Leasehold properties in Longfield with more than one hundred years outstanding 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 freehold unless savings on ground rent and service charges justify it.

Lenders may not loan monies with a short lease

Banks and Building Societies have set criteria when lending monies charged on leasehold property. Many will simply not lend at all once the remaining lease term goes beneath a specified unexpired lease term. Many Lending institutions will not consider property with a remaining below 75 years suitable security. As well as this being important when selling, it is also relevant if you are seeking to remortgage your Longfield home.

Why use us for your lease extension in Longfield?

The lawyers that we work with procure Longfield 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.

Longfield Lease Extension Example Cases:

Connor, Longfield, Kent

Half a year ago Connor, started to get close to the eighty-year mark with the lease on his leasehold apartment in Longfield. Having bought his home twenty years ago, the lease term was of minimal relevance. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Connor was able to extend his lease just under the wire last April. Connor and the freeholder via the management company subsequently settled on the final figure of £5,000 . If the lease had gone to less than eighty years, the amount would have escalated by a minimum £1,125.

Longfield case:

Dr U Nelson was assigned a lease of a one bedroom flat in Longfield in August 2011. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Longfield with a long lease were valued around £270,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease elapsed on 28 November 2101. Taking into account 75 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.

Longfield case:

In 2013 we were approached by Mr Dexter Allen who, having moved into a basement flat in Longfield in October 2009. The question was if we could estimate the premium would be to extend the lease by 90 years. Identical properties in Longfield with an extended lease were worth £168,800. The average amount of ground rent was £60 billed every twelve months. The lease terminated on 14 May 2081. Considering the 55 years outstanding we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of costs.