Main reasons to commence your Woodford lease extension

Why you should start your Woodford lease extension today:

Increase your lease and increase your Woodford property value

The closer a domestic lease in Woodford nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Woodford will qualify for this right; nevertheless a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Woodford with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not finance a property with a short lease

Many mortgage companies will not grant a mortgage on a lease with under 70 years unexpired - although this varies from lender to lender. A buyer will likely encounter difficulties to obtain a mortgage and this will result in your Woodford property becoming difficult to dispose of or refinance.

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

Irrespective of whether you are a tenant or a freeholder in Woodford,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 experience and the close ties they enjoy with Woodford valuers.

Woodford Lease Extension Example Cases:

Finn, Woodford, North East London,

Finn owned a conversion apartment in Woodford being marketed with a lease of a few days over 61 years left. Finn on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.

Woodford case:

Last Spring we were approach by Mr and Mrs. I Clarke , who took over the lease of a one bedroom apartment in Woodford in May 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Woodford with 100 year plus lease were in the region of £166,800. The average amount of ground rent was £50 collected annually. The lease expiry date was on 21 April 2076. Considering the 50 years remaining we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of fees.