Top reasons for Old Ford lease extension

Top reasons for lease extension now:

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

As the length of the unexpired term of a Old Ford residential lease decreases so does its value and therefore the value of your property. If the lease has, in excess of one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Old Ford will qualify for this right; however a lawyer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold premises in Old Ford with in excess of one hundred years outstanding on the lease are often referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may not grant a mortgage with a short lease

Lenders do not grant a mortgage on short residential leases. You are likely to experience problems if you want to sell your flat in Old Ford if the remaining term of your lease is under the criteria set by most lenders. Different mortgage companies have different requirements but in the main theyrequire an unexpired term of at least 65 years.

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

Using our service will provide you enhanced control over the value of your Old Ford leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Old Ford Lease Extension Case Summaries:

Ollie, Old Ford, London

14 months ago Ollie, came dangerously close to the eighty-year mark with the lease on his one bedroom apartment in Old Ford. Having bought his flat two decades ago, the lease term was of no relevance. Thankfully, he recognised he needed to take action soon on a lease extension. Ollie was able to extend his lease at the eleventh hour in July. Ollie and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If the lease had descended to less than 80 years, the sum would have increased by at least £900.

Old Ford case:

Last July we were phoned by Ms Mia Johnson , who took over the lease of a purpose-built apartment in Old Ford in March 2012. We are asked if we could approximate the premium would be to extend the lease by an additional years. Identical flats in Old Ford with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected monthly. The lease elapsed in 2090. Taking into account 64 years unexpired we calculated the premium to the landlord to extend the lease to be within £16,200 and £18,600 plus costs.