Why you should commence your Rochford lease extension

Top reasons for lease extension now:

Increase your lease and increase your Rochford property value

Rochford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Rochford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Rochford you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Rochford with in excess of 100 years outstanding 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not lend on a short lease

The trend since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

Using our service gives you enhanced control over the value of your Rochford leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Rochford Lease Extension Example Cases:

Kirsty, Rochford, Essex,

After protracted negotiations with the freeholder of her ground floor apartment in Rochford, Kirsty initiated the lease extension process just as the lease was coming close to the all-important 80-year deadline. The legal work completed in July 2015. The freeholder’s charges were kept to an absolute minimum.

Rochford case:

In 2013 we were approached by Dr Muhammad Gunderson who, having owned a garden flat in Rochford in November 2012. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar homes in Rochford with a long lease were valued around £227,800. The mid-range ground rent payable was £45 billed annually. The lease expired on 10 June 2091. Having 65 years outstanding we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.

Rochford case:

Last Christmas we were approach by Dr L Moore , who moved into a newly refurbished flat in Rochford in November 2010. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Rochford with an extended lease were valued around £270,000. The mid-range ground rent payable was £55 collected per annum. The lease finished on 25 July 2102. Considering the 76 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.