Main reasons to start your Tolworth lease extension

Why you should commence your Tolworth lease extension today:

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

The value of Tolworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than eighty years

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

Leasehold properties in Tolworth with in excess of 100 years remaining 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to get concerned at around 75 years. This will be problematic once you come to dispose of or remortgage your flat as it will be effectively unmortgageable. Even though you might not have an imminent plan to sell but when you do your buyer must wait 2 years before they can exercise the right to a a lease extension.

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

Regardless of whether you are a tenant or a freeholder in Tolworth,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tolworth valuers.

Tolworth Lease Extension Example Cases:

Rosie, Tolworth, South West London,

Off the back of unsuccessful negotiations with the freeholder of her one bedroom flat in Tolworth, Rosie commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The legal work was concluded in March 2008. The landlord’s fees were kept to an absolute minimum.

Tolworth case:

Last September we were contacted by Mrs O Allen , who bought a one bedroom apartment in Tolworth in October 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Tolworth with an extended lease were valued around £206,200. The average amount of ground rent was £60 billed quarterly. The lease terminated in 2082. Having 56 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including expenses.