Main reasons to start your Earlsfield lease extension

Main reasons to start your Earlsfield lease extension today:

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

The market value of Earlsfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is less than eighty years

Earlsfield property with a lease extension is almost the same value as a freehold

Leasehold properties in Earlsfield with more than one hundred years unexpired 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may decide not to grant a mortgage on a short lease

Mortgage lenders have specific criteria when loaning funds secured on leasehold property. Some will simply not lend at all once the residual lease term falls lower than a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired below seventy years as acceptable security. In addition to this being important when selling, it is also relevant where you are intending to remortgage your Earlsfield home.

What makes us experts in Earlsfield lease extensions?

Regardless of whether you are a tenant or a freeholder 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 Case Summaries:

Thomas, Earlsfield, South West London,

Thomas owned a 2 bedroom flat in Earlsfield being marketed with a lease of a little over fifty eight years unexpired. Thomas informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Thomas to invoke his statutory right. Thomas procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.

Earlsfield case:

Last Autumn we were contacted by Dr H Robinson , who took over the lease of a basement flat in Earlsfield in July 1995. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Earlsfield with a long lease were in the region of £257,800. The average ground rent payable was £65 collected per annum. The lease expiry date was in 2090. Considering the 65 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of costs.