Why you should commence your Rochford lease extension

Why you should commence your Rochford lease extension today:

Increase your lease and increase your Rochford property value

As the the remaining lease term of a Rochford residential lease lessens so does its value and therefore the value of your property. If the lease has, over 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Rochford will qualify for this right; however a conveyancing solicitor will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Rochford 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not grant a mortgage with a short lease

The propensity since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Rochford lease extensions?

Using our service gives you enhanced control over the value of your Rochford leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Rochford Lease Extension Case Studies:

Bethan, Rochford, Essex,

Off the back of lengthy correspondence with the freeholder of her two bedroom flat in Rochford, Bethan initiated the lease extension process as the eighty year mark was quickly advancing. The transaction was finalised in February 2010. The landlord’s charges were restricted to approximately 600 pounds.

Rochford case:

Ms R Campbell acquired a one bedroom flat in Rochford in February 1995. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Rochford with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 billed monthly. The lease elapsed on 15 November 2095. Given that there were 69 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.

Rochford case:

Last November we were called by Mr and Mrs. K Alexander , who took over the lease of a studio flat in Rochford in September 1998. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Similar properties in Rochford with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease expired in 2106. Considering the 80 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.