Why you should commence your Eastcote lease extension

Top reasons for lease extension now:

A Eastcote leasehold property depreciates with the years remaining on the lease.

When it comes to long leasehold property in Eastcote, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years remaining. Leasehold owners in Eastcote with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. When a lease has under eighty years outstanding, under the relevant statute the landlord can calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold premises in Eastcote with in excess of 100 years left 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to issue a mortgage on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Eastcote?

The lawyers that we work with undertake Eastcote 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 conveyancing solicitor we work with provide it.

Eastcote Lease Extension Example Cases:

Mason, Eastcote, West London

Twenty four months ago Mason, came critically close to the eighty-year mark with the lease on his ground floor flat in Eastcote. In buying his home two decades ago, the length of the lease was of minimal concern. by good luck, he noticed he would soon be paying an inflated amount for a lease extension. Mason was able to extend his lease at the eleventh hour last May. Mason and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If the lease had dipped lower than 80 years, the premium would have increased by at least £925.

Eastcote case:

Last Christmas we were contacted by Mr and Mrs. G Roux , who took over the lease of a ground floor flat in Eastcote in August 2005. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar homes in Eastcote with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease terminated in 2102. Having 76 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.