Top reasons for South Ockendon lease extension

Why you should start your South Ockendon lease extension today:

A South Ockendon lease depreciates with the years remaining on the lease.

When it comes to domestic leasehold premises in South Ockendon, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in South Ockendon with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has under eighty years left, under the relevant statute the freeholder is entitled to calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold premises in South Ockendon with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may decide not to grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to get concerned at around 75 years. This may be problematic as and when you need to sell or refinance your flat as it will be effectively unmortgageable. Even though you might have no imminent plan to sell but when you do your buyer must hold off for two years before they can exercise the right to a a lease extension.

What makes us experts in South Ockendon lease extensions?

Engaging our service gives you better control over the value of your South Ockendon leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

South Ockendon Lease Extension Case Summaries:

Muhammad, South Ockendon, Essex

Last Winter Muhammad, started to get close to the 80-year mark with the lease on his purpose- built flat in South Ockendon. In buying his home 19 years previously, the lease term was of minimal relevance. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. Muhammad arranged for a lease extension just under the wire last May. Muhammad and the freeholder via the managing agents eventually settled on a premium of £6,000 . If the lease had dipped below eighty years, the price would have increased by at least £925.

South Ockendon case:

Last month we were contacted by Mr and Mrs. J Wood , who purchased a one bedroom flat in South Ockendon in June 2000. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Similar premises in South Ockendon with a long lease were in the region of £290,000. The average amount of ground rent was £45 invoiced per annum. The lease elapsed in 2099. Considering the 73 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.