Why you should commence your Greenford lease extension

Why you should commence your Greenford lease extension today:

Increase your lease and increase your Greenford property value

When it comes to long leasehold premises in Greenford, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Residents in Greenford with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has fewer than eighty years left, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

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

Leasehold premises in Greenford with over one hundred years outstanding 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Lending institutions will not loan monies with a short lease

Banks and Building Societies have set criteria when loaning monies charged on leasehold homes. Many will simply refrain from lending at all once the residual lease term slips below a certain unexpired lease term. Many Lending institutions will not consider property with a remaining below seventy years suitable security. In addition to this being important when selling, it is also relevant if you are seeking to refinance your Greenford property.

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

Irrespective of whether you are a tenant or a landlord in Greenford,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 in-depth market knowledge and the close ties they enjoy with Greenford valuers.

Greenford Lease Extension Example Cases:

Eliot, Greenford, West London

Last year Eliot, started to get near to the eighty-year mark with the lease on his basement apartment in Greenford. In buying his property 19 years ago, the length of the lease was of minimal importance. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Eliot was able to extend his lease just in the nick of time last July. Eliot and the landlord who owned the flat above in the end agreed on sum of £5,500 . If he had missed the deadline, the premium would have escalated by at least £1,025.

Greenford case:

In 2014 we were contacted by Ms Rachel Wilson who, having owned a ground floor apartment in Greenford in July 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar flats in Greenford with a long lease were valued about £242,600. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish in 2093. Taking into account 67 years remaining we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including expenses.