Main reasons to start your Tolworth lease extension

Main reasons to commence your Tolworth lease extension today:

A Tolworth leasehold property depreciates with the years remaining on the lease.

Tolworth leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Flat owners in Tolworth will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s best to be guided by a conveyancer during the process.

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

It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Lenders may not loan monies on a short lease

Mortgage companies are tightening their criteria and a meaningful number now want flats to have a minimum of 60 if not 70 years left at the expiry of the mortgage. Considering plenty of flats in Tolworth were built in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to obtain a mortgage.

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

Using our service will provide you better control over the value of your Tolworth leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Tolworth Lease Extension Example Cases:

Sam, Tolworth, South West London,

Sam was the the leasehold owner of a conversion flat in Tolworth being marketed with a lease of fraction over fifty eight years left. Sam on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.

Tolworth case:

Mr G Nguyen moved into a one bedroom flat in Tolworth in February 1999. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparable residencies in Tolworth with an extended lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out in 2086. Given that there were 60 years remaining we approximated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 not including costs.