Why you should commence your Old Ford lease extension

Main reasons to start your Old Ford lease extension today:

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

Old Ford leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Old Ford will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Old Ford with over 100 years left 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

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

The propensity since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Old Ford lease extensions?

The conveyancing solicitors that we work with procure 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:

Leon, Old Ford, London,

Leon owned a studio apartment in Old Ford on the market with a lease of just over 59 years remaining. Leon on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Leon to exercise his statutory right. Leon obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.

Old Ford case:

Mr and Mrs. J Rose completed a basement apartment in Old Ford in November 2004. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparative premises in Old Ford with a long lease were in the region of £260,000. The average ground rent payable was £50 billed yearly. The lease terminated on 8 February 2098. Having 72 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.