Why you should commence your Heathrow lease extension

Why you should commence your Heathrow lease extension today:

Increase your lease and increase your Heathrow property value

With a domestic leasehold property in Heathrow, 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 long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Leasehold owners in Heathrow with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has less than 80 years left, under the relevant statute the freeholder can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Lenders will not loan monies with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This may be problematic as and when you need to market or refinance your flat as it will be practically unmortgageable. You might have no imminent desire to sell but when you do your purchaser must hold off for a couple of years before being able to start the legal procedures for an extension to the lease.

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

Regardless of whether you are a tenant or a freeholder in Heathrow,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Heathrow valuers.

Heathrow Lease Extension Example Cases:

Logan, Heathrow, West London,

Logan owned a high value flat in Heathrow being marketed with a lease of fraction over 59 years left. Logan on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

Heathrow case:

In 2010 we were contacted by Mr and Mrs. K Ramírez who, having was assigned a lease of a ground floor flat in Heathrow in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable flats in Heathrow with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 invoiced quarterly. The lease finished on 22 July 2087. Given that there were 61 years unexpired we approximated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.