Why you should commence your Waltham Abbey lease extension

Main reasons to commence your Waltham Abbey lease extension today:

A Waltham Abbey lease depreciates with the years remaining on the lease.

With a residential leasehold property in Waltham Abbey, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years left. Anyone in Waltham Abbey with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has under 80 years left, under the relevant statute the freeholder is entitled to calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is payable.

Waltham Abbey property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Waltham Abbey with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may decide not to grant a mortgage on a short lease

Banks and building societies do not like short residential leases. You most probably encounter problems where you need to sell your flat in Waltham Abbey if the remaining lease term is less than the criteria set by most banks and building societies. Different lenders have varying requirements but in the main theyrequire an unexpired term of at least seventy years.

What makes us experts in Waltham Abbey lease extensions?

The conveyancers that we work with procure Waltham Abbey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Waltham Abbey Lease Extension Case Studies:

Daniel, Waltham Abbey, Essex

In recent months Daniel, started to get near to the 80-year threshold with the lease on his studio apartment in Waltham Abbey. Having purchased his flat two decades ago, the length of the lease was of no relevance. As luck would have it, he realised he needed to take action soon on Extending the lease. Daniel arranged for a lease extension at the eleventh hour in May. Daniel and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If the lease had slid lower than eighty years, the sum would have gone up by a minimum £1,125.

Waltham Abbey case:

Mrs P Bonnet acquired a newly refurbished flat in Waltham Abbey in August 2006. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative homes in Waltham Abbey with a long lease were worth £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease ended in 2098. Having 72 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.