Why you should start your Thornton Heath lease extension

Why you should commence your Thornton Heath lease extension today:

A Thornton Heath leasehold property depreciates with the years remaining on the lease.

Chances are that if you own a flat in Thornton Heath you actually own a long leasehold interest over your property

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

It is conventional wisdom 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 45 years remaining, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies may not grant a mortgage with a short lease

Mortgage companies do not like short residential leases. You most probably encounter problems if you wish to sell your flat in Thornton Heath if the unexpired term of your lease is below the criteria set by the majority of lenders. Different mortgage companies have varying requirements but in the main they are looking for an unexpired term of at least 65 years.

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

The lawyers that we work with procure Thornton Heath 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 conveyancing solicitor we work with provide it.

Thornton Heath Lease Extension Case Studies:

Ali, Thornton Heath, Surrey,

Ali was the the leasehold proprietor of a studio flat in Thornton Heath on the market with a lease of fraction over 72 years left. Ali informally spoke with his freeholder a well known Bristol-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 a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.

Thornton Heath case:

Mr and Mrs. P Bell took over the lease of a garden flat in Thornton Heath in January 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Thornton Heath with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease terminated in 2098. Taking into account 72 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.