Top reasons for Purfleet lease extension

Why you should commence your Purfleet lease extension today:

Increase your lease and increase your Purfleet property value

Purfleet residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.

Purfleet property with a lease extension is almost the same value as a freehold

Leasehold residencies in Purfleet with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to lend on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Lease extensions in Purfleet can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Purfleet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Purfleet Lease Extension Example Cases:

Aarav, Purfleet, Essex,

Aarav owned a 2 bedroom apartment in Purfleet being marketed with a lease of a little over 59 years unexpired. Aarav informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.

Purfleet case:

Last Christmas we were called by Mr and Mrs. D Bonnet , who was assigned a lease of a one bedroom apartment in Purfleet in October 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical flats in Purfleet with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 billed monthly. The lease ended on 22 September 2101. Given that there were 75 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.