Top reasons for Smithfield lease extension

Main reasons to commence your Smithfield lease extension today:

Increase your lease and increase your Smithfield property value

Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Smithfield. Clearly, the term of lease left shortens over time. This may pass by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Smithfield have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. You should give due deliberation before putting off your Smithfield lease extension. Putting off that expense now only increases the price you will eventually incur for a lease extension

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

Leasehold properties in Smithfield with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may decide not to grant a mortgage with a short lease

The propensity since 2008 has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. Historically lenders were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Smithfield?

Lease extensions in Smithfield can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in this area.

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:

Omar, Smithfield, London,

Omar was the the leasehold proprietor of a 2 bedroom apartment in Smithfield on the market with a lease of a little over 61 years outstanding. Omar on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar procured expert legal guidance and secured satisfactory deal informally and readily saleable.

Smithfield case:

Ms S Pérez completed a one bedroom flat in Smithfield in March 2002. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Similar properties in Smithfield with 100 year plus lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced monthly. The lease elapsed in 2081. Having 55 years unexpired we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including fees.

Smithfield case:

Mr and Mrs. I Baker took over the lease of a first floor apartment in Smithfield in September 1995. We are asked if we could estimate the price would be to prolong the lease by ninety years. Similar flats in Smithfield with an extended lease were worth £295,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease lapsed on 10 March 2101. Having 75 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.