Why you should commence your West Thurrock lease extension

Top reasons for lease extension now:

A West Thurrock leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in West Thurrock depends on how many years the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded well before the 80 year threshold. Current legislation entitles West Thurrock qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in West Thurrock with more than 100 years left 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may decide not to grant a mortgage with a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies between mortgage companies. A buyer will no doubt encounter difficulties to obtain a mortgage and this will result in your West Thurrock property becoming difficult to sell or to obtain finance on.

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

Using our service gives you enhanced control over the value of your West Thurrock leasehold, as your property will be more valuable and saleable 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.

West Thurrock Lease Extension Example Cases:

Danielle, West Thurrock, Essex,

After lengthy discussions with the landlord of her leasehold flat in West Thurrock, Danielle commenced the lease extension process as the eighty year threshold was fast coming. The lease extension completed in January 2010. The landlord’s fees were restricted to a tad over 550 GBP.

West Thurrock case:

Last Autumn we were phoned by Dr Madeleine Thompson , who purchased a one bedroom apartment in West Thurrock in October 2012. The question was if we could estimate the premium would be to prolong the lease by 90 years. Comparable properties in West Thurrock with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease terminated on 20 October 2098. Taking into account 72 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.