Why you should start your Petersham lease extension

Top reasons for lease extension now:

A Petersham leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Petersham residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Petersham property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Petersham will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.

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

Leasehold residencies in Petersham with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders will not finance a property with a short lease

Almost all mortgage companies will not lend on a lease with less than 70 years unexpired - although this varies between mortgage companies. A buyer will likely encounter difficulties in obtaining a mortgage and this will result in your Petersham property being difficult to sell or to obtain finance on.

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

Engaging our service will provide you better control over the value of your Petersham leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Petersham Lease Extension Case Summaries:

Teddy, Petersham, South West London,

Teddy owned a studio flat in Petersham being marketed with a lease of a little over 72 years unexpired. Teddy informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Petersham case:

Dr C Leroy acquired a recently refurbished apartment in Petersham in May 2006. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable premises in Petersham with a long lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease finished on 9 July 2079. Having 53 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.