Main reasons to commence your Little Burstead lease extension

Why you should start your Little Burstead lease extension today:

Increase your lease and increase your Little Burstead property value

For anyone whose Little Burstead property is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Little Burstead with over one hundred 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Lending institutions will not finance a property with a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to get nervous at around 75 years. This may be problematic once you wish to market or refinance your flat as it will be effectively unmortgageable. Even though you might not have an immediate desire to sell but when you do your purchaser will have to hold off for two years before being able to exercise the right to a a lease extension.

Why use us for your lease extension in Little Burstead?

The conveyancing solicitors that we work with undertake Little Burstead 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 conveyancer we work with provide it.

Little Burstead Lease Extension Example Cases:

Eli, Little Burstead, Essex

During the course of the last few months Eli, started to get close to the 80-year threshold with the lease on his leasehold flat in Little Burstead. In buying his home 19 years previously, the unexpired term was of minimal bearing. Thankfully, he recognised he needed to take steps soon on a lease extension. Eli was able to extend his lease just in the nick of time last July. Eli and the landlord eventually agreed on sum of £5,500 . If the lease had descended lower than eighty years, the figure would have escalated by at least £1,000.

Little Burstead case:

In 2009 we were called by Mr and Mrs. E Cox who, having took over the lease of a studio flat in Little Burstead in March 2004. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical homes in Little Burstead with a long lease were valued around £191,400. The average ground rent payable was £55 collected monthly. The lease came to a finish on 20 July 2080. Considering the 54 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including costs.

Little Burstead case:

Mr Rory Morgan took over the lease of a one bedroom apartment in Little Burstead in June 2007. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative properties in Little Burstead with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 billed monthly. The lease termination date was on 8 April 2100. Having 74 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.