Main reasons to commence your Putney lease extension

Why you should commence your Putney lease extension today:

Increase your lease and increase your Putney property value

Putney 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 the lease becomes more expensive. It is the case that most Putney tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Putney you really ought to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Putney flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay

An extended lease is almost the same value as a freehold

Leasehold premises in Putney with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to grant a mortgage with a short lease

Most banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will contemplate lending on it. Regardless of whether you need a mortgage, you should keep in mind that it is probable 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 financial worth of the property could suffer. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to lend on

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

Irrespective of whether you are a tenant or a landlord in Putney,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Putney valuers.

Putney Lease Extension Example Cases:

Benjamin, Putney, South West London

Two years ago Benjamin, came precariously close to the 80-year mark with the lease on his garden flat in Putney. In buying his property 19 years previously, the unexpired term was of little bearing. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Benjamin extended the lease at the eleventh hour in June. Benjamin and the freeholder eventually agreed on a premium of £6,000 . If the lease had fallen to less than eighty years, the figure would have increased by at least £1,150.

Putney case:

Last Christmas we were approach by Mr and Mrs. H Edwards , who owned a ground floor apartment in Putney in September 2010. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative premises in Putney with an extended lease were in the region of £290,000. The average ground rent payable was £45 collected per annum. The lease end date was on 24 March 2099. Given that there were 73 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.