Why you should start your Stansted lease extension

Why you should start your Stansted lease extension today:

A Stansted lease depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in Stansted is a wasting asset as a result of the diminishing lease term. If the lease has, more than 99 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Stansted will qualify for this right; that being said a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two 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 further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may not loan monies on a short lease

Mortgage companies do not like short residential leases. You are likely to experience difficulties where you wish to sell your flat in Stansted if the unexpired lease term is less than the criteria set by the majority of mortgage companies. Different mortgage companies have varying criteria but generally theyrequire a minimum remaining lease term of seventy years.

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

Regardless of whether you are a tenant or a landlord in Stansted,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stansted valuers.

Stansted Lease Extension Example Cases:

Stanley, Stansted, Essex,

Stanley owned a 2 bedroom flat in Stansted on the market with a lease of a few days over fifty eight years outstanding. Stanley on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.

Stansted case:

Dr C Simon was assigned a lease of a first floor flat in Stansted in July 2005. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparable properties in Stansted with 100 year plus lease were worth £166,400. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish on 11 April 2080. Having 54 years unexpired we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus professional charges.

Stansted case:

In 2009 we were phoned by Mrs Robyn Gray who, having owned a ground floor apartment in Stansted in March 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative properties in Stansted with 100 year plus lease were worth £227,800. The mid-range amount of ground rent was £45 billed quarterly. The lease ended on 20 May 2091. Given that there were 65 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.