Top reasons for Tilbury lease extension

Top reasons for lease extension now:

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

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Tilbury. Inevitably, the length of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the residence needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Tilbury have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Do give due consideration before putting off your Tilbury lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension

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

Leasehold residencies in Tilbury with over 100 years unexpired 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to loan monies on a short lease

The trend since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Tilbury lease extensions?

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

Tilbury Lease Extension Example Cases:

Ben, Tilbury, Essex,

Ben owned a 2 bedroom flat in Tilbury on the market with a lease of a few days over 59 years unexpired. Ben informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ben to invoke his statutory right. Ben obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.

Tilbury case:

Mr and Mrs. Y Williams completed a one bedroom flat in Tilbury in June 2009. The dilemma was if we could estimate the price would be for a 90 year lease extension. Similar residencies in Tilbury with an extended lease were in the region of £270,000. The average ground rent payable was £65 collected yearly. The lease termination date was in 2094. Given that there were 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.

Tilbury case:

Last Summer we were approach by Dr Ella White , who moved into a purpose-built apartment in Tilbury in April 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Tilbury with an extended lease were worth £208,600. The average amount of ground rent was £60 collected per annum. The lease expired on 14 February 2083. Given that there were 57 years remaining we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of expenses.