Main reasons to commence your South Acton lease extension

Why you should start your South Acton lease extension today:

Increase your lease and increase your South Acton property value

With a long leasehold premises in South Acton, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than 80 years left. Anyone in South Acton with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. Once the lease term has fewer than 80 years remaining, under the relevant Act the freeholder can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may not issue a mortgage with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in South Acton lease extensions?

The conveyancers that we work with procure South Acton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

South Acton Lease Extension Case Studies:

Chelsea, South Acton, West London,

After protracted discussions with the landlord of her first floor flat in South Acton, Chelsea started the lease extension process just as the lease was nearing the critical eighty-year deadline. The legal work was finalised in August 2005. The freeholder’s costs were kept to an absolute minimum.

South Acton case:

Mr and Mrs. I Bailey took over the lease of a ground floor apartment in South Acton in October 2000. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Similar premises in South Acton with an extended lease were valued around £208,200. The average amount of ground rent was £65 invoiced quarterly. The lease termination date was in 2086. Given that there were 61 years outstanding we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including costs.