Why you should start your West Smithfield lease extension

Main reasons to start your West Smithfield lease extension today:

Increase your lease and increase your West Smithfield property value

With a residential leasehold property in West Smithfield, 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. Even though this may appear like a lengthy period of time, you may consider 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 becomes disproportionately more expensive particularly once there are less than 80 years left. Leasehold owners in West Smithfield with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has below 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is due.

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

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders may not lend with a short lease

Nearly all mortgage lenders will not lend on a lease with under 70 years left to run - although this varies from lender to lender. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your West Smithfield property becoming difficult to sell or to obtain finance on.

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

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

West Smithfield Lease Extension Case Studies:

Hollie, West Smithfield, London,

Following protracted negotiations with the landlord of her studio flat in West Smithfield, Hollie started the lease extension process just as the lease was approaching the critical 80-year mark. The legal work was finalised in August 2009. The landlord’s charges were negotiated to slightly above five hundred pounds.

West Smithfield case:

Dr L White bought a studio flat in West Smithfield in April 2004. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Similar properties in West Smithfield with an extended lease were in the region of £290,000. The average ground rent payable was £45 invoiced monthly. The lease lapsed on 7 January 2098. Considering the 72 years left we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including expenses.