Top reasons for East Acton lease extension

Top reasons for lease extension now:

A East Acton lease depreciates with the years remaining on the lease.

With a domestic leasehold premises in East Acton, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Residents in East Acton with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. Once a lease has below 80 years outstanding, under the current statute the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold premises in East Acton with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lenders will not loan monies on a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under 75 years as they are deemed to be insufficient security.

What makes us experts in East Acton lease extensions?

Regardless of whether you are a tenant or a freeholder in East Acton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with East Acton valuers.

East Acton Lease Extension Case Studies:

Mollie, East Acton, West London,

After protracted negotiations with the freeholder of her garden flat in East Acton, Mollie commenced the lease extension process as the eighty year deadline was quickly advancing. The lease extension was concluded in April 2007. The landlord’s charges were kept to an absolute minimum.

East Acton case:

Dr R Adams completed a one bedroom apartment in East Acton in November 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in East Acton with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 billed per annum. The lease concluded on 15 June 2105. Having 79 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.