Main reasons to commence your Putney lease extension

Top reasons for lease extension now:

Increase your lease and increase your Putney property value

It’s an underpublicised certainty that a Putney residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Putney property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Putney will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.

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

Leasehold premises in Putney with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.

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

Mortgage companies will not grant a mortgage on short residential leases. You are likely to encounter problems where you want to sell your flat in Putney if the unexpired term of your lease is less than the criteria set by most mortgage companies. Different lenders have different requirements but in the main they are looking for a minimum remaining lease term of seventy years.

Why use us for your lease extension in Putney?

The conveyancing solicitors that we work with procure Putney 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 conveyancer we work with provide it.

Putney Lease Extension Example Cases:

Adam, Putney, South West London

During the course of the last few months Adam, came perilously near to the eighty-year threshold with the lease on his purpose- built flat in Putney. In buying his property two decades ago, the unexpired term was of minimal concern. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Adam arranged for a lease extension at the eleventh hour last July. Adam and the freeholder ultimately agreed on an amount of £5,500 . If the lease had gone below 80 years, the price would have become more exhorbitant by a minimum £1,000.

Putney case:

Last Winter we were phoned by Mr F Pérez , who was assigned a lease of a garden flat in Putney in March 2006. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical residencies in Putney with an extended lease were in the region of £280,000. The average amount of ground rent was £45 collected quarterly. The lease concluded on 1 November 2095. Taking into account 69 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.