Main reasons to commence your Southall lease extension

Why you should start your Southall lease extension today:

Increase your lease and increase your Southall property value

It’s an underpublicised truth that a Southall residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Southall property prices.Once your lease nears 85ish years, you need to 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 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Southall will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.

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

It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Banks and Building Societies will not grant a mortgage on a short lease

Most high street banks are tightening their criteria and a meaningful number now expect flats to have at least 60 if not 70 years left once the mortgage has expired. Considering a number of flats in Southall were built in the fifties, sixties and seventies this means many now need to be extended if they if they are to be mortgageable.

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

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

Southall Lease Extension Case Studies:

John, Southall, North London

Twenty four months ago John, started to get near to the eighty-year mark with the lease on his studio flat in Southall. In buying his property 19 years previously, the lease term was of no bearing. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. John extended the lease at the eleventh hour last March. John and the landlord in the end settled on sum of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £1,075.

Southall case:

Last Spring we were called by Mr and Mrs. Y López , who took over the lease of a one bedroom apartment in Southall in May 2006. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar premises in Southall with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 billed yearly. The lease ended in 2089. Having 63 years left we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus costs.