Main reasons to start your Balham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Balham property value

The re-sale value of a leasehold property in Balham is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised in advance of the 80 year threshold. Statute entitles Balham qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

Balham property with a lease extension has roughly the same value as a freehold

Leasehold properties in Balham with in excess of 100 years left on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders will not finance a property on a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to get concerned at around 75 years. This may cause difficulties as and when you come to market or refinance your property as it will be practically unmortgageable. Even though you may not have an imminent desire to sell but when you do your purchaser will have to wait two years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in Balham?

Engaging our service will provide you enhanced control over the value of your Balham leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Balham Lease Extension Case Studies:

Georgina, Balham, South West London,

Off the back of protracted negotiations with the landlord of her studio flat in Balham, Georgina initiated the lease extension process just as the lease was nearing the all-important eighty-year deadline. The legal work was finalised in March 2010. The landlord’s fees were negotiated to slightly above six hundred pounds.

Balham case:

In 2011 we were e-mailed by Ms Lydia Cooper who, having completed a ground floor flat in Balham in January 2007. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable premises in Balham with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 collected annually. The lease expired in 2095. Having 69 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.