Why you should start your Petts Wood lease extension

Top reasons for lease extension now:

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

It’s an underpublicised truth that a Petts Wood residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Petts Wood property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Petts Wood will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies may decide not to lend on a short lease

Nearly all mortgage lenders will not grant a mortgage on a lease with under seventy years left to run - although this varies from lender to lender. A buyer will no doubt encounter difficulties to obtain a mortgage and this could result in your Petts Wood property being difficult to dispose of or to obtain finance on.

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

Engaging our service will provide you increased control over the value of your Petts Wood leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Petts Wood Lease Extension Case Studies:

Lucas, Petts Wood, Kent,

Lucas owned a high value apartment in Petts Wood on the market with a lease of just over 72 years unexpired. Lucas informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and secured an acceptable resolution informally and sell the flat.

Petts Wood case:

Last year we were e-mailed by Dr Hunter Carter , who owned a basement apartment in Petts Wood in January 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Petts Wood with an extended lease were worth £225,800. The mid-range ground rent payable was £60 invoiced per annum. The lease expiry date was in 2086. Considering the 60 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus expenses.