Top reasons for West Smithfield lease extension

Why you should commence your West Smithfield lease extension today:

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

With a domestic leasehold property in West Smithfield, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Anyone in West Smithfield with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has under 80 years outstanding, under the current legislation the landlord can calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is due.

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

Leasehold properties in West Smithfield with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not issue a mortgage on a short lease

Mortgage companies do not like short residential leases. You are likely to experience problems where you wish to sell your flat in West Smithfield if the unexpired lease term is below the criteria set by most mortgage companies. Different mortgage companies have different criteria but generally they are looking for an unexpired term of at least 65 years.

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

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

West Smithfield Lease Extension Case Summaries:

Gemma, West Smithfield, London,

Trailing lengthy negotiations with the freeholder of her garden apartment in West Smithfield, Gemma commenced the lease extension process just as the lease was approaching the all-important eighty-year mark. The legal work was finalised in March 2005. The freeholder’s fees were kept to an absolute minimum.

West Smithfield case:

Dr Caitlin Torres owned a garden flat in West Smithfield in October 2000. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in West Smithfield with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 invoiced monthly. The lease lapsed in 2083. Given that there were 57 years remaining we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus costs.