Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Smithfield. Inevitably, the term of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Smithfield have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give due deliberation before putting off your Smithfield lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works | |
| Virgin |
Lease extensions in Smithfield can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience 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.
Following protracted correspondence with the freeholder of her studio apartment in Smithfield, Abigail commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The legal work was finalised in May 2012. The freeholder’s fees were restricted to less than 600 GBP.
Mr and Mrs. U Gómez purchased a garden apartment in Smithfield in February 2005. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable premises in Smithfield with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 billed per annum. The lease elapsed on 16 January 2100. Considering the 74 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Last February we were approach by Mrs Emma Morel , who took over the lease of a one bedroom apartment in Smithfield in May 1997. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Similar flats in Smithfield with an extended lease were in the region of £243,000. The average amount of ground rent was £65 invoiced per annum. The lease end date was in 2089. Taking into account 63 years remaining we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus legals.