Why you should commence your Carshalton Beeches lease extension

Why you should start your Carshalton Beeches lease extension today:

A Carshalton Beeches lease depreciates with the years remaining on the lease.

When it comes to residential leasehold property in Carshalton Beeches, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years left. Leasehold owners in Carshalton Beeches with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once the lease term has fewer than 80 years left, under the relevant Act the freeholder can calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same 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 decades to come.

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

Most high street banks are making their criteria more stringent and a meaningful number now want flats to have at least 60 if not 70 years remaining once the mortgage has expired. As many flats in Carshalton Beeches were built in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to obtain a mortgage.

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

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

Carshalton Beeches Lease Extension Case Studies:

Jude, Carshalton Beeches, Surrey,

Jude was the the leasehold owner of a conversion flat in Carshalton Beeches being marketed with a lease of a little over sixty years unexpired. Jude informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be due on a lease extension were Jude to invoke his statutory right. Jude procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.

Carshalton Beeches case:

Last Winter we were called by Mrs Mia Moreau , who acquired a one bedroom flat in Carshalton Beeches in October 2004. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable residencies in Carshalton Beeches with an extended lease were in the region of £208,600. The average amount of ground rent was £60 collected per annum. The lease terminated in 2083. Considering the 57 years left we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus costs.