Top reasons for Eastcote lease extension

Why you should start your Eastcote lease extension today:

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

The market value of a leasehold property in Eastcote depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded prior to the eighty year threshold. Current legislation entitles Eastcote qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Eastcote with more than one hundred years unexpired on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and service charges justify it.

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

The propensity since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

The conveyancers that we work with procure 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:

Charlotte, Eastcote, West London,

Following lengthy correspondence with the landlord of her basement flat in Eastcote, Charlotte initiated the lease extension process as the eighty year deadline was fast nearing. The transaction completed in April 2013. The landlord’s charges were negotiated to a tad over four hundred pounds.

Eastcote case:

Dr Caleb Lambert owned a one bedroom flat in Eastcote in October 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative homes in Eastcote with a long lease were valued about £285,000. The average ground rent payable was £55 collected yearly. The lease lapsed in 2106. Considering the 80 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.