Why you should start your Paddock Wood lease extension

Top reasons for lease extension now:

A Paddock Wood lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Paddock Wood. Clearly, the term of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the property needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Paddock Wood have the right to extend the lease for an additional 90 years under statute. Do give due consideration before putting off your Paddock Wood lease extension. Holding off the cost now simply increases the price you will eventually incur to extend your lease

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

Leasehold properties in Paddock Wood with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders may decide not to grant a mortgage with a short lease

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

Irrespective of whether you are a tenant or a freeholder in Paddock Wood,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Paddock Wood valuers.

Paddock Wood Lease Extension Example Cases:

Alisha, Paddock Wood, Kent,

Following lengthy negotiations with the landlord of her leasehold apartment in Paddock Wood, Alisha started the lease extension process as the eighty year threshold was swiftly coming. The transaction was finalised in May 2010. The freeholder’s costs were kept to an absolute minimum.

Paddock Wood case:

Last Autumn we were approach by Dr Phoebe Morris , who acquired a ground floor flat in Paddock Wood in July 1996. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Paddock Wood with a long lease were in the region of £285,000. The average amount of ground rent was £55 collected quarterly. The lease concluded in 2105. Taking into account 79 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.

Paddock Wood case:

Mr and Mrs. R Roux acquired a basement flat in Paddock Wood in July 2002. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative homes in Paddock Wood with an extended lease were worth £193,400. The average ground rent payable was £65 billed quarterly. The lease concluded on 12 May 2085. Taking into account 59 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of fees.