Main reasons to commence your Thurrock lease extension

Top reasons for lease extension now:

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

It’s a harsh certainty that a Thurrock residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Thurrock property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term drops below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Thurrock will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.

Thurrock property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to lend on a short lease

Many banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years left to run - although this varies between mortgage companies. A buyer will undoubtedly encounter difficulties to obtain a mortgage and this could result in your Thurrock property being difficult to sell or to obtain finance on.

What makes us experts in Thurrock lease extensions?

Regardless of whether you are a tenant or a freeholder in Thurrock,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thurrock valuers.

Thurrock Lease Extension Example Cases:

Aarav, Thurrock, Essex

14 months ago Aarav, came dangerously near to the 80-year threshold with the lease on his first floor flat in Thurrock. In buying his property 18 years previously, the length of the lease was of minimal concern. Thankfully, he recognised he needed to take action soon on Extending the lease. Aarav was able to extend his lease just under the wire in August. Aarav and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he not met the deadline, the sum would have become more exhorbitant by a minimum £1,075.

Thurrock case:

Mr G Adams purchased a first floor apartment in Thurrock in August 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Thurrock with a long lease were valued about £216,000. The average amount of ground rent was £60 invoiced quarterly. The lease end date was in 2084. Having 58 years left we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.

Thurrock case:

Last year we were phoned by Mr and Mrs. D Mitchell , who moved into a one bedroom flat in Thurrock in January 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Thurrock with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 collected per annum. The lease terminated on 3 August 2104. Having 78 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.