Top reasons for Southall lease extension

Main reasons to start your Southall lease extension today:

Increase your lease and increase your Southall property value

The closer a domestic lease in Southall nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Southall will qualify for this right; that being said a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Southall with over 100 years unexpired on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to lend on a short lease

Banks and Building Societies have set criteria when lending funds charged on leasehold property. Some will simply refrain from lending at all once the remaining lease term goes beneath a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below 75 years as acceptable security. In addition to this being important when selling, it is also relevant if you are seeking to refinance your Southall home.

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

The lawyers that we work with undertake Southall 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 conveyancer we work with provide it.

Southall Lease Extension Case Studies:

Muhammad, Southall, North London

Last Winter Muhammad, started to get close to the 80-year mark with the lease on his studio flat in Southall. Having purchased his flat 19 years ago, the lease term was of minimal interest. Fortunately, he noticed he needed to take action soon on a lease extension. Muhammad was able to extend his lease at the eleventh hour in January. Muhammad and the freeholder subsequently agreed on the final figure of £6,000 . If the lease had dropped to less than eighty years, the figure would have become more costly by at least £850.

Southall case:

Last Summer we were approach by Dr J Mason , who moved into a purpose-built apartment in Southall in August 2008. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Southall with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 invoiced yearly. The lease came to a finish in 2081. Considering the 55 years outstanding we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including expenses.