Main reasons to start your Tolworth lease extension

Why you should commence your Tolworth lease extension today:

Increase your lease and increase your Tolworth property value

When it comes to domestic leasehold premises in Tolworth, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years left. Leasehold owners in Tolworth with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. Once the lease term has under eighty years remaining, under the current statute the freeholder can calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

Tolworth property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Tolworth with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to finance a property with a short lease

Banks and building societies do not like short residential leases. You most probably encounter difficulties if you need to sell your flat in Tolworth if the unexpired lease term is under the criteria set by most mortgage companies. Different mortgage companies have different requirements but generally they are looking for a minimum remaining lease term of 65 years.

What makes us experts in Tolworth lease extensions?

Irrespective of whether you are a tenant or a landlord in Tolworth,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tolworth valuers.

Tolworth Lease Extension Example Cases:

Finley, Tolworth, South West London,

Finley owned a high value flat in Tolworth on the market with a lease of a little over fifty eight years unexpired. Finley on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Finley to invoke his statutory right. Finley procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.

Tolworth case:

In 2009 we were contacted by Mrs O García who, having took over the lease of a one bedroom flat in Tolworth in May 2008. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Tolworth with an extended lease were in the region of £280,000. The average ground rent payable was £45 collected quarterly. The lease end date was on 28 June 2096. Having 70 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.