Why you should commence your Battersea lease extension

Top reasons for lease extension now:

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

Unfortunately that a Battersea residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Battersea property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Battersea will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Mortgage lenders will not lend with a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on a leasehold property before they will contemplate it as adequate security. Even if you don't require a mortgage, you should keep in mind that it is probable that someone wanting to acquire your property in the future might well do, so if they are not able to obtain a mortgage, then the value of your property could suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to accept

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

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

Battersea Lease Extension Case Summaries:

Lily, Battersea, South West London,

Following unsuccessful correspondence with the landlord of her two bedroom flat in Battersea, Lily commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The lease extension was concluded in September 2008. The landlord’s costs were kept to an absolute minimum.

Battersea case:

Dr W Flores owned a ground floor apartment in Battersea in October 2011. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparative homes in Battersea with a long lease were worth £183,600. The average ground rent payable was £65 billed quarterly. The lease came to a finish in 2083. Taking into account 57 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.