Main reasons to start your Redbridge lease extension

Why you should start your Redbridge lease extension today:

Increase your lease and increase your Redbridge property value

Redbridge leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Redbridge will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Redbridge with over one hundred years unexpired on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may not grant a mortgage on a short lease

Almost all mortgage companies will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies between mortgage companies. A buyer will undoubtedly find it difficult to obtain a mortgage and this could result in your Redbridge property becoming difficult to sell or to obtain finance on.

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

Engaging our service gives you enhanced control over the value of your Redbridge leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Redbridge Lease Extension Case Summaries:

Laura, Redbridge, North East London,

Subsequent to lengthy discussions with the landlord of her leasehold apartment in Redbridge, Laura started the lease extension process just as her lease was coming close to the critical eighty-year threshold. The transaction completed in April 2013. The freeholder’s charges were kept to an absolute minimum.

Redbridge case:

Mr and Mrs. O Phillips moved into a one bedroom apartment in Redbridge in May 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable properties in Redbridge with a long lease were worth £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated in 2090. Considering the 64 years remaining we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 not including expenses.