Top reasons for Saffron Walden lease extension

Top reasons for lease extension now:

A Saffron Walden leasehold property depreciates with the years remaining on the lease.

Saffron Walden residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This may be problematic when you come to market or refinance your flat as it will be practically unmortgageable. You may not have an imminent plan to sell but when you do your purchaser must wait a couple of years before they can start the legal procedures for an extension to the lease.

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

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

Saffron Walden Lease Extension Example Cases:

Omar, Saffron Walden, Essex,

Omar was the the leasehold proprietor of a studio apartment in Saffron Walden being marketed with a lease of a little over 72 years remaining. Omar informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.

Saffron Walden case:

In 2009 we were called by Ms H Simon who, having owned a ground floor apartment in Saffron Walden in October 1999. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical flats in Saffron Walden with 100 year plus lease were in the region of £237,600. The mid-range amount of ground rent was £45 collected monthly. The lease elapsed in 2093. Considering the 67 years outstanding we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including legals.

Saffron Walden case:

In 2009 we were contacted by Mrs N Martinez who, having acquired a one bedroom apartment in Saffron Walden in February 2007. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical premises in Saffron Walden with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 collected quarterly. The lease expired on 1 March 2104. Considering the 78 years unexpired we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.