Main reasons to start your Tolworth lease extension

Why you should commence your Tolworth lease extension today:

Increase your lease and increase your Tolworth property value

It’s a harsh certainty that a Tolworth residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Tolworth property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Most flat owners in Tolworth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.

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

It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety 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 will not grant a mortgage on a short lease

Mortgage companies do not lend on short residential leases. You most probably experience difficulties if you wish to sell your flat in Tolworth if the unexpired term of your lease is below the criteria set by the majority of mortgage companies. Different lenders have different requirements but on the whole they are looking for a minimum remaining lease term of 65 years.

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

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

Tolworth Lease Extension Case Studies:

Logan, Tolworth, South West London,

Logan owned a 2 bedroom apartment in Tolworth on the market with a lease of fraction over 61 years unexpired. Logan on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.

Tolworth case:

Mr and Mrs. G Dupont acquired a garden flat in Tolworth in February 2008. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable homes in Tolworth with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced annually. The lease ended on 22 September 2090. Considering the 64 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus fees.