Why you should commence your Greenford lease extension

Top reasons for lease extension now:

A Greenford lease depreciates with the years remaining on the lease.

Greenford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Greenford tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Greenford you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Greenford property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Mortgage lenders may not finance a property with a short lease

Mortgage companies will not grant a mortgage on short residential leases. You most probably experience problems where you need to sell your flat in Greenford if the remaining term of your lease is under the criteria set by most lenders. Different lenders have different criteria but on the whole they are looking for a minimum remaining lease term of 65 years.

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

Using our service gives you enhanced control over the value of your Greenford leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Greenford Lease Extension Case Summaries:

Amber, Greenford, West London,

After unsuccessful negotiations with the landlord of her two bedroom flat in Greenford, Amber started the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The lease extension completed in March 2011. The landlord’s costs were kept to an absolute minimum.

Greenford case:

Dr S Baker owned a ground floor flat in Greenford in July 2008. The dilemma was if we could estimate the price could be for a 90 year lease extension. Similar properties in Greenford with a long lease were worth £255,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed in 2097. Given that there were 71 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.