Top reasons for Earls Court lease extension

Top reasons for lease extension now:

Increase your lease and increase your Earls Court property value

The re-sale value of a leasehold property in Earls Court depends on how long the lease has remaining. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded well before the 80 year mark. Statute entitles Earls Court qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

Earls Court property with a lease extension is almost the same value as a freehold

Leasehold properties in Earls Court with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Lending institutions may not lend with a short lease

Banks and Building Societies have specific criteria when lending funds charged on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term goes beneath a specified unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than 75 years suitable security. In addition to impacting your ability to sell, it is also relevant where you are seeking to remortgage your Earls Court property.

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

Regardless of whether you are a tenant or a freeholder in Earls Court,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 experience and the close ties they enjoy with Earls Court valuers.

Earls Court Lease Extension Example Cases:

Michael, Earls Court, West London

Last October Michael, came perilously near to the 80-year threshold with the lease on his garden apartment in Earls Court. In buying his property two decades ago, the lease term was of no importance. Fortunately, he recognised he would imminently be paying an inflated amount for Extending the lease. Michael arranged for a lease extension just in the nick of time last July. Michael and the freeholder ultimately agreed on sum of £5,500 . If the lease had dropped below eighty years, the sum would have escalated by a minimum £1,000.

Earls Court case:

Dr Emma Lefèvre purchased a purpose-built apartment in Earls Court in May 2003. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Earls Court with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 collected annually. The lease ended on 2 July 2106. Considering the 80 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.