Top reasons for Earlsfield lease extension

Top reasons for lease extension now:

A Earlsfield lease depreciates with the years remaining on the lease.

Earlsfield leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Earlsfield will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s prudent to be guided by a lawyer during the process.

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

Leasehold residencies in Earlsfield with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lenders may decide not to finance a property with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get concerned at around 75 years. This will cause difficulties as and when you come to sell or refinance your property as it will be practically unmortgageable. Even though you may have no imminent intention to sell but when you do your buyer will have to hold off for 2 years before they can exercise the right to a an extension to the lease.

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

Regardless of whether you are a tenant or a landlord in Earlsfield,the lease extension lawyers 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 Earlsfield valuers.

Earlsfield Lease Extension Example Cases:

Theo, Earlsfield, South West London,

Theo owned a studio flat in Earlsfield being marketed with a lease of just over sixty years outstanding. Theo on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. 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. Ordinarily, ground rent would not be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.

Earlsfield case:

In 2010 we were approached by Mr and Mrs. L Moreau who, having was assigned a lease of a first floor flat in Earlsfield in May 2000. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Identical premises in Earlsfield with a long lease were valued about £171,800. The mid-range amount of ground rent was £55 collected yearly. The lease concluded in 2076. Considering the 50 years as a residual term we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including costs.