Why you should start your West Smithfield lease extension

Why you should start your West Smithfield lease extension today:

A West Smithfield lease depreciates with the years remaining on the lease.

Unfortunately that a West Smithfield residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the West Smithfield property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term slips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in West Smithfield will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies may not finance a property on a short lease

Lenders are making their criteria more stringent and many now want flats to have a minimum of sixty if not seventy years remaining at the expiry of the mortgage. Given that a number of flats in West Smithfield were built in the fifties, sixties and seventies this means many now need to be extended if they if they are to be mortgageable.

Why use us for your lease extension in West Smithfield?

The conveyancers that we work with handle West Smithfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

West Smithfield Lease Extension Case Studies:

Isabel, West Smithfield, London,

Following lengthy correspondence with the freeholder of her ground floor flat in West Smithfield, Isabel commenced the lease extension process as the eighty year deadline was quickly nearing. The legal work was concluded in November 2013. The landlord’s charges were restricted to below 550 GBP.

West Smithfield case:

In 2014 we were approached by Dr Daniel Nelson who, having moved into a one bedroom flat in West Smithfield in July 2006. We are asked if we could approximate the price could be to extend the lease by an additional years. Identical premises in West Smithfield with a long lease were worth £257,800. The average amount of ground rent was £65 collected monthly. The lease elapsed on 27 November 2090. Taking into account 65 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.