Main reasons to commence your Smithfield lease extension

Why you should commence your Smithfield lease extension today:

Increase your lease and increase your Smithfield property value

Smithfield leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Smithfield will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.

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

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Lending institutions may not loan monies with a short lease

Most banks have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under 75 years as they are considered to be insufficient for lending purposes.

What makes us experts in Smithfield lease extensions?

Retaining our service will provide you increased control over the value of your Smithfield leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Smithfield Lease Extension Case Studies:

Owen, Smithfield, London,

Owen was the the leasehold owner of a high value apartment in Smithfield being marketed with a lease of a little over 59 years outstanding. Owen informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Smithfield case:

Mr and Mrs. T Cooper moved into a one bedroom flat in Smithfield in August 2007. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative homes in Smithfield with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed yearly. The lease terminated on 26 September 2096. Considering the 70 years outstanding we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.

Smithfield case:

Last Spring we were e-mailed by Mr George Wilson , who moved into a one bedroom flat in Smithfield in November 2010. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparable properties in Smithfield with a long lease were in the region of £223,400. The average ground rent payable was £60 billed per annum. The lease finished on 4 February 2085. Taking into account 59 years outstanding we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 not including legals.