Why you should commence your Petts Wood lease extension

Why you should commence your Petts Wood lease extension today:

Increase your lease and increase your Petts Wood property value

Petts Wood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Petts Wood tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Petts Wood you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Petts Wood leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay

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

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.

Lenders will not issue a mortgage with a short lease

Banks and Building Societies have specific criteria when loaning monies charged on leasehold property. Some will simply refrain from lending at all once the remaining lease term drops under a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are wanting to refinance your Petts Wood property.

What makes us experts in Petts Wood lease extensions?

Engaging our service gives you increased control over the value of your Petts Wood leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Petts Wood Lease Extension Example Cases:

Callum, Petts Wood, Kent,

Callum owned a high value flat in Petts Wood on the market with a lease of a little over 59 years unexpired. Callum informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to exercise his statutory right. Callum obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.

Petts Wood case:

In 2010 we were approached by Mr T Petit who, having purchased a one bedroom apartment in Petts Wood in November 2008. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar premises in Petts Wood with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 billed monthly. The lease elapsed on 14 March 2094. Considering the 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.