Main reasons to start your Cubitt Town lease extension

Main reasons to start your Cubitt Town lease extension today:

Increase your lease and increase your Cubitt Town property value

There is no doubt about it a leasehold property in Cubitt Town is a wasting asset as a result of the shortening lease. If the lease has, in excess of one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Cubitt Town will meet the qualifying criteria; that being said a conveyancing solicitor should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

Leasehold residencies in Cubitt Town with over one hundred years left 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Mortgage companies are really clamping down as regards to properties in Cubitt Town with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction thus narrowing the number of potential purchasers.

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

The lawyers that we work with handle Cubitt Town lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Cubitt Town Lease Extension Example Cases:

Blake, Cubitt Town, London

Half a year ago Blake, came very near to the eighty-year threshold with the lease on his one bedroom apartment in Cubitt Town. Having bought his flat two decades ago, the unexpired term was of little interest. Fortunately, he noticed he needed to take steps soon on a lease extension. Blake extended the lease just in the nick of time in June. Blake and the freeholder eventually settled on the final figure of £6,000 . If the lease had descended below eighty years, the premium would have gone up by a minimum £1,025.

Cubitt Town case:

In 2011 we were phoned by Mr Finley Flores who, having purchased a basement apartment in Cubitt Town in August 1997. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparative properties in Cubitt Town with a long lease were worth £243,000. The average ground rent payable was £65 billed annually. The lease ended on 16 July 2089. Given that there were 63 years remaining we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including legals.