Why you should commence your Old Ford lease extension

Main reasons to commence your Old Ford lease extension today:

A Old Ford lease depreciates with the years remaining on the lease.

Old Ford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Old Ford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Old Ford you really ought to see if your lease has between seventy and ninety years left. There are compelling reasons why a Old Ford leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

Leasehold premises in Old Ford with more than 100 years unexpired on the lease are sometimes referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies may not loan monies on a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with under 70 years left to run - although this varies from lender to lender. A buyer will no doubt find it difficult to obtain a mortgage and this could result in your Old Ford property being difficult to sell or remortgage.

What makes us experts in Old Ford lease extensions?

Irrespective of whether you are a tenant or a freeholder in Old Ford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Old Ford valuers.

Old Ford Lease Extension Example Cases:

Finn, Old Ford, London,

Finn was the the leasehold owner of a high value flat in Old Ford being marketed with a lease of fraction over 61 years outstanding. Finn informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finn to exercise his statutory right. Finn obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.

Old Ford case:

Last Winter we were called by Dr P Norbert , who acquired a garden flat in Old Ford in May 2008. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable homes in Old Ford with 100 year plus lease were valued around £256,600. The mid-range ground rent payable was £60 billed quarterly. The lease finished in 2078. Given that there were 52 years outstanding we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 not including expenses.