Why you should commence your Thornton Heath lease extension

Top reasons for lease extension now:

Increase your lease and increase your Thornton Heath property value

When it comes to long leasehold property in Thornton Heath, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than eighty years remaining. Residents in Thornton Heath with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years outstanding, under the relevant legislation the freeholder can calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold residencies in Thornton Heath with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lenders may not finance a property on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by banks has increased. Historically mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Thornton Heath?

Regardless of whether you are a tenant or a freeholder in Thornton Heath,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thornton Heath valuers.

Thornton Heath Lease Extension Example Cases:

Jacob, Thornton Heath, Surrey,

Jacob owned a studio apartment in Thornton Heath being marketed with a lease of a little over 72 years left. Jacob informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jacob to exercise his statutory right. Jacob procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Thornton Heath case:

In 2014 we were phoned by Dr B González who, having was assigned a lease of a garden flat in Thornton Heath in March 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar flats in Thornton Heath with a long lease were valued around £250,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease lapsed in 2090. Having 64 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of expenses.