Why you should commence your Brentford lease extension

Why you should commence your Brentford lease extension today:

Increase your lease and increase your Brentford property value

The re-sale value of a leasehold property in Brentford is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised well before the eighty year cut off point. Leasehold Reform legislation enables Brentford qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

Brentford property with a lease extension has roughly the same value as a freehold

Leasehold premises in Brentford with over 100 years remaining 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions will not grant a mortgage with a short lease

Nearly all mortgage companies will not grant a mortgage on a lease with under seventy years unexpired - although this varies from lender to lender. A buyer will likely find it difficult in obtaining a mortgage and this could result in your Brentford property being difficult to sell or to obtain finance on.

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

Engaging our service gives you increased control over the value of your Brentford leasehold, as your property will be more valuable and saleable in relation to the 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.

Brentford Lease Extension Case Summaries:

James, Brentford, West London

Two years ago James, came seriously close to the 80-year threshold with the lease on his two bedroom apartment in Brentford. In buying his property two decades ago, the lease term was of no concern. by good luck, he recognised he needed to take action soon on a lease extension. James was able to extend his lease just under the wire last June. James and the landlord in the end settled on an amount of £6,000 . If the lease had gone to less than 80 years, the premium would have escalated by a minimum £1,075.

Brentford case:

In 2012 we were called by Dr O Mercier who, having moved into a purpose-built flat in Brentford in January 2004. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Comparable properties in Brentford with an extended lease were in the region of £267,600. The average ground rent payable was £65 collected yearly. The lease lapsed on 24 April 2093. Taking into account 67 years unexpired we estimated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus legals.