Why you should start your Fulham lease extension

Top reasons for lease extension now:

A Fulham leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Fulham. Inevitably, the term of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Fulham have the right to extend the lease for an additional 90 years under statute. Please give careful attention before putting off your Fulham lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease

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

It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to loan monies with a short lease

Lenders are really restricting their approach as regards to properties in Fulham with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus restricting your market.

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

Using our service gives you enhanced control over the value of your Fulham leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Fulham Lease Extension Case Studies:

James, Fulham, West London,

James owned a conversion flat in Fulham on the market with a lease of just over 61 years left. James informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were James to exercise his statutory right. James procured expert advice and secured satisfactory deal informally and readily saleable.

Fulham case:

In 2014 we were approached by Mr and Mrs. W Hernández who, having owned a newly refurbished flat in Fulham in March 2006. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Fulham with an extended lease were worth £275,000. The average amount of ground rent was £55 billed every twelve months. The lease ran out in 2101. Having 76 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.