Main reasons to commence your Earls Court lease extension

Main reasons to start your Earls Court lease extension today:

Increase your lease and increase your Earls Court property value

When it comes to domestic leasehold premises in Earls Court, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years left. Leasehold owners in Earls Court with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. When the lease term has under 80 years left, under the current statute the landlord can calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is due.

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

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not grant a mortgage on a short lease

Many banks and building societies will not grant a mortgage on a lease with under 70 years remaining - although this varies from lender to lender. A purchaser will likely encounter difficulties in obtaining a mortgage and this will result in your Earls Court property being difficult to dispose of or remortgage.

What makes us experts in Earls Court lease extensions?

Engaging our service gives you enhanced control over the value of your Earls Court leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Earls Court Lease Extension Example Cases:

Samuel, Earls Court, West London,

Samuel owned a 2 bedroom flat in Earls Court on the market with a lease of fraction over fifty eight years left. Samuel on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Samuel to exercise his statutory right. Samuel procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.

Earls Court case:

Last Spring we were contacted by Mr and Mrs. Y Adams , who completed a one bedroom flat in Earls Court in August 1998. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable properties in Earls Court with 100 year plus lease were valued around £183,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease elapsed on 19 January 2083. Given that there were 57 years left we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.