Top reasons for Stratford lease extension

Top reasons for lease extension now:

Increase your lease and increase your Stratford property value

The re-sale value of a leasehold property in Stratford is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be concluded ahead of the 80 year cut off point. Leasehold Reform legislation entitles Stratford qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Stratford with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not finance a property on a short lease

Most high street banks are making their criteria more stringent and many now expect flats to have at least sixty if not seventy years remaining once the mortgage has expired. Considering many flats in Stratford were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

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

Regardless of whether you are a tenant or a landlord in Stratford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stratford valuers.

Stratford Lease Extension Example Cases:

Francesca, Stratford, London,

Off the back of lengthy negotiations with the freeholder of her garden apartment in Stratford, Francesca initiated the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work completed in March 2015. The freeholder’s charges were negotiated to a tad over 500 GBP.

Stratford case:

Dr B Brooks was assigned a lease of a ground floor flat in Stratford in January 2003. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable premises in Stratford with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected yearly. The lease elapsed in 2096. Taking into account 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.