Main reasons to commence your West Smithfield lease extension

Why you should start your West Smithfield lease extension today:

Increase your lease and increase your West Smithfield property value

West Smithfield leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most West Smithfield tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in West Smithfield you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

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

Leasehold premises in West Smithfield with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not grant a mortgage on a short lease

Banks and Building Societies have specific criteria when loaning monies secured on leasehold homes. Many will simply refrain from lending at all once the remaining lease term drops lower than a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining below seventy years as adequate security. As well as impacting your ability to sell, it is also relevant if you are intending to remortgage your West Smithfield property.

What makes us experts in West Smithfield lease extensions?

Lease extensions in West Smithfield can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring West Smithfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

West Smithfield Lease Extension Example Cases:

Jack, West Smithfield, London

Last October Jack, started to get close to the eighty-year mark with the lease on his first floor flat in West Smithfield. In buying his property two decades ago, the lease term was of minimal relevance. Fortunately, he realised he needed to take action soon on Extending the lease. Jack arranged for a lease extension just in the nick of time last June. Jack and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £875.

West Smithfield case:

In 2013 we were contacted by Mr and Mrs. V Edwards who, having purchased a garden flat in West Smithfield in August 2011. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar homes in West Smithfield with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed monthly. The lease lapsed in 2094. Considering the 68 years remaining we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.