Main reasons to start your Leatherhead lease extension

Why you should commence your Leatherhead lease extension today:

Increase your lease and increase your Leatherhead property value

Leatherhead residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.

Leatherhead property with a lease extension has roughly the same value as a freehold

Leasehold properties in Leatherhead with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘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 buying the reversionary interest unless savings on ground rent and estate charges warrant it.

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

The definition of a short lease varies by mortgage company, yet banks and building societies start to get jittery at around 75 years. This may be problematic when you come to market or refinance your flat as it will be practically unmortgageable. You may have no imminent plan to sell but when you do your purchaser must hold off for two years before they can initiate the legal procedures for an extension to the lease.

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

The conveyancing solicitors that we work with handle Leatherhead 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.

Leatherhead Lease Extension Example Cases:

Alex, Leatherhead, Surrey

Last year Alex, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Leatherhead. In buying his flat two decades ago, the lease term was of little interest. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Alex arranged for a lease extension just in the nick of time in January. Alex and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If the lease had descended lower than eighty years, the premium would have increased by a minimum £1,100.

Leatherhead case:

In 2014 we were e-mailed by Mr O González who, having owned a basement flat in Leatherhead in January 2001. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar homes in Leatherhead with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 billed annually. The lease terminated in 2087. Considering the 61 years left we estimated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including costs.

Leatherhead case:

Mr Jackson Wright bought a first floor apartment in Leatherhead in February 2006. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical properties in Leatherhead with a long lease were in the region of £166,800. The average ground rent payable was £50 billed monthly. The lease concluded in 2076. Given that there were 50 years left we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.