Why you should commence your Old Ford lease extension

Main reasons to start your Old Ford lease extension today:

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

Old Ford leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Old Ford will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

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

The trend since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies would lend on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

The lawyers that we work with undertake Old Ford 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.

Old Ford Lease Extension Example Cases:

Jude, Old Ford, London,

Jude owned a conversion apartment in Old Ford being sold with a lease of fraction over 61 years left. Jude on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jude to invoke his statutory right. Jude obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Old Ford case:

Last month we were phoned by Mr and Mrs. J Gómez , who acquired a studio flat in Old Ford in March 2009. The question was if we could approximate the price could be to extend the lease by ninety years. Comparative residencies in Old Ford with a long lease were worth £285,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2105. Having 79 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.