Top reasons for Cubitt Town lease extension

Top reasons for lease extension now:

Increase your lease and increase your Cubitt Town property value

When it comes to residential leasehold property in Cubitt Town, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years left. Residents in Cubitt Town with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has under 80 years remaining, under the relevant statute the freeholder can calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold premises in Cubitt Town with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders will not issue a mortgage with a short lease

Most banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will consider it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is likely that someone wishing to buy your property in the future might well do, so where they can't get a mortgage, then the financial worth of the property could suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to accept

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

Regardless of whether you are a tenant or a landlord in Cubitt Town,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cubitt Town valuers.

Cubitt Town Lease Extension Example Cases:

Toby, Cubitt Town, London,

Toby owned a conversion apartment in Cubitt Town being marketed with a lease of fraction over sixty years unexpired. Toby on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to exercise his statutory right. Toby obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.

Cubitt Town case:

Dr G Fournier owned a studio flat in Cubitt Town in July 2008. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Cubitt Town with 100 year plus lease were valued about £198,800. The mid-range ground rent payable was £55 collected yearly. The lease lapsed in 2081. Considering the 55 years remaining we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including fees.