Why you should start your Smithfield lease extension

Top reasons for lease extension now:

Increase your lease and increase your Smithfield property value

The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Smithfield may extend the lease for a further ninety years under statute. Do think carefully before delaying your Smithfield lease extension. Shelving the costs today simply increases the price you will ultimately have to pay to extend the lease.

An extended lease is almost the same value as a freehold

Leasehold properties in Smithfield with in excess of 100 years left 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 upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lenders may not grant a mortgage with a short lease

Lending institutions have specific criteria when lending funds secured on leasehold property. Some will simply refuse lend at all once the remaining lease term falls below a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below seventy years as acceptable security. In addition to this being important when selling, it is also relevant if you are wanting to refinance your Smithfield property.

What makes us experts in Smithfield lease extensions?

Using our service gives you enhanced control over the value of your Smithfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Smithfield Lease Extension Example Cases:

Joshua, Smithfield, London,

Joshua owned a 2 bedroom flat in Smithfield on the market with a lease of just over 72 years remaining. Joshua on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.

Smithfield case:

In 2010 we were contacted by Mr and Mrs. M Allen who, having owned a basement apartment in Smithfield in October 2000. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparable premises in Smithfield with a long lease were worth £223,400. The average amount of ground rent was £60 collected yearly. The lease ended in 2085. Given that there were 59 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 plus costs.

Smithfield case:

In 2011 we were called by Mr and Mrs. Y Khan who, having took over the lease of a basement apartment in Smithfield in August 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Smithfield with a long lease were worth £205,000. The mid-range ground rent payable was £50 invoiced yearly. The lease came to a finish on 27 November 2105. Considering the 79 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.