Top reasons for Petts Wood lease extension

Main reasons to commence your Petts Wood lease extension today:

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

The market value of Petts Wood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold properties in Petts Wood with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may not lend on a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Petts Wood lease extensions?

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

Petts Wood Lease Extension Case Studies:

Luke, Petts Wood, Kent,

Luke owned a high value apartment in Petts Wood being marketed with a lease of fraction over 72 years left. Luke on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Luke to invoke his statutory right. Luke procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.

Petts Wood case:

Dr Matthew Roberts purchased a basement apartment in Petts Wood in July 2005. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative premises in Petts Wood with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease concluded on 27 April 2105. Taking into account 79 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.