Main reasons to start your Ottershaw lease extension

Why you should commence your Ottershaw lease extension today:

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

Unfortunately that a Ottershaw residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Ottershaw property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. Most leasehold owners in Ottershaw will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may decide not to finance a property on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Ottershaw lease extensions?

Lease extensions in Ottershaw can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Ottershaw lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Ottershaw Lease Extension Case Studies:

Rebecca, Ottershaw, Surrey,

Following unsuccessful negotiations with the freeholder of her basement apartment in Ottershaw, Rebecca initiated the lease extension process as the 80 year mark was rapidly nearing. The transaction was finalised in September 2010. The freeholder’s costs were kept to an absolute minimum.

Ottershaw case:

In 2011 we were called by Mr and Mrs. M Allen who, having took over the lease of a first floor flat in Ottershaw in January 1997. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Identical flats in Ottershaw with an extended lease were in the region of £225,800. The average ground rent payable was £60 collected per annum. The lease elapsed on 24 October 2086. Considering the 60 years outstanding we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of professional charges.

Ottershaw case:

Last Winter we were contacted by Dr Rosie David , who took over the lease of a newly refurbished flat in Ottershaw in January 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Ottershaw with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 collected yearly. The lease expired in 2106. Having 80 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.