Why you should start your Petts Wood lease extension

Why you should start your Petts Wood lease extension today:

A Petts Wood lease depreciates with the years remaining on the lease.

Petts Wood leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Petts Wood will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.

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

Leasehold residencies in Petts Wood with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may not issue a mortgage on a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Petts Wood lease extensions?

The conveyancers that we work with procure Petts Wood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Petts Wood Lease Extension Example Cases:

Paige, Petts Wood, Kent,

Trailing lengthy correspondence with the landlord of her leasehold flat in Petts Wood, Paige initiated the lease extension process just as her lease was coming close to the crucial 80-year mark. The legal work was concluded in February 2012. The freeholder’s costs were negotiated to less than 600 GBP.

Petts Wood case:

Dr E García owned a ground floor apartment in Petts Wood in January 2008. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Similar residencies in Petts Wood with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 billed monthly. The lease terminated in 2090. Having 64 years outstanding we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including costs.