Why you should start your Eastcote lease extension

Why you should commence your Eastcote lease extension today:

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

Eastcote leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Eastcote tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Eastcote you really ought to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

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

Leasehold premises in Eastcote with over one hundred years remaining 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may not issue a mortgage with a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on any leasehold property before they will consider providing a mortgage on it. Even if you don't require a mortgage, you should keep in mind that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so in the event that they can't get a mortgage, then the market price of your property could be adversely impacted. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are willing to lend on

Why use us for your lease extension in Eastcote?

The lawyers that we work with handle 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:

Ollie, Eastcote, West London

During the course of the last few months Ollie, started to get close to the 80-year threshold with the lease on his leasehold flat in Eastcote. Having bought his property 19 years previously, the length of the lease was of minimal interest. Fortunately, he noticed he would imminently be paying way over the odds for a lease extension. Ollie arranged for a lease extension just under the wire last July. Ollie and the landlord who owned the flat above in the end agreed on sum of £5,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,075.

Eastcote case:

Mr and Mrs. D Murphy took over the lease of a studio apartment in Eastcote in January 2011. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar residencies in Eastcote with 100 year plus lease were valued about £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease came to a finish in 2082. Taking into account 56 years unexpired we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.