Why you should start your Greenford lease extension

Why you should commence your Greenford lease extension today:

Increase your lease and increase your Greenford property value

It’s an underpublicised certainty that a Greenford residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Greenford property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term drops below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Greenford will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.

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

Leasehold properties in Greenford with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders may decide not to grant a mortgage with a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become concerned at around 75 years. This may be problematic once you come to dispose of or refinance your flat as it will be effectively unmortgageable. Even though you may not have an immediate plan to sell but when you do your purchaser will have to hold off for two years before they can exercise the right to a an extension to the lease.

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

Using our service will provide you better 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 wish 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 Example Cases:

Owen, Greenford, West London

Last October Owen, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Greenford. In buying his flat two decades ago, the lease term was of no relevance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Owen extended the lease just ahead of time last September. Owen and the landlord eventually agreed on the final figure of £5,000 . If the lease had gone below 80 years, the amount would have increased by a minimum £900.

Greenford case:

In 2010 we were e-mailed by Mr and Mrs. M García who, having bought a basement flat in Greenford in March 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable homes in Greenford with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 invoiced annually. The lease terminated in 2101. Having 75 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.