Why you should start your Raynes Park lease extension

Main reasons to start your Raynes Park lease extension today:

A Raynes Park leasehold property depreciates with the years remaining on the lease.

As the length of the unexpired term of a Raynes Park residential lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 99 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner than later. The majority of flat owners in Raynes Park will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Raynes Park with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may not loan monies with a short lease

Banks and building societies are really restricting their approach as regards to properties in Raynes Park with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you wanted to sell, your only options would be to find a cash buyer, or try your luck at auction thus restricting your market.

What makes us experts in Raynes Park lease extensions?

Irrespective of whether you are a tenant or a freeholder in Raynes Park,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Raynes Park valuers.

Raynes Park Lease Extension Case Summaries:

Cameron, Raynes Park, South West London

In 2014 Cameron, came very near to the eighty-year threshold with the lease on his one bedroom flat in Raynes Park. Having purchased his flat twenty years previously, the lease term was of minimal significance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Cameron arranged for a lease extension just in the nick of time last June. Cameron and the landlord eventually settled on sum of £5,500 . If the lease had gone to less than 80 years, the figure would have escalated by at least £875.

Raynes Park case:

Mr and Mrs. T Garcia moved into a studio flat in Raynes Park in September 2000. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Comparable homes in Raynes Park with an extended lease were valued about £174,200. The average amount of ground rent was £55 collected every twelve months. The lease terminated on 8 June 2077. Taking into account 51 years left we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus legals.