Top reasons for Smithfield lease extension

Main reasons to commence your Smithfield lease extension today:

A Smithfield lease depreciates with the years remaining on the lease.

Smithfield leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Smithfield residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Smithfield you should investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Smithfield leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions will not lend with a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under 75 years as they are considered to be deficient for lending purposes.

What makes us experts in Smithfield lease extensions?

Lease extensions in Smithfield can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 Smithfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Smithfield Lease Extension Case Studies:

Callum, Smithfield, London

Two years ago Callum, came seriously close to the 80-year mark with the lease on his leasehold flat in Smithfield. In buying his property two decades ago, the unexpired term was of minimal bearing. Luckily, he became aware that he needed to take action soon on Extending the lease. Callum arranged for a lease extension just in the nick of time in September. Callum and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If the lease had dipped below 80 years, the amount would have increased by at least £1,050.

Smithfield case:

In 2010 we were e-mailed by Mr and Mrs. S Reed who, having bought a first floor apartment in Smithfield in April 1995. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable properties in Smithfield with 100 year plus lease were valued around £174,200. The mid-range amount of ground rent was £55 collected quarterly. The lease ended in 2077. Considering the 51 years remaining we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus legals.

Smithfield case:

In 2012 we were called by Dr Gabriel Bonnet who, having acquired a basement flat in Smithfield in February 2008. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable flats in Smithfield with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed yearly. The lease expired in 2097. Taking into account 71 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.