Main reasons to commence your Swiss Cottage lease extension

Why you should start your Swiss Cottage lease extension today:

A Swiss Cottage leasehold property depreciates with the years remaining on the lease.

For anyone whose Swiss Cottage flat is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.

Swiss Cottage property with a lease extension is almost the same value as a freehold

Leasehold premises in Swiss Cottage with in excess of 100 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

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

Nearly all banks and building societies will be unwilling to lend on a lease with under seventy years left to run - although this varies from lender to lender. A purchaser will likely find it difficult to obtain a mortgage and this will result in your Swiss Cottage property becoming difficult to dispose of or remortgage.

Why use us for your lease extension in Swiss Cottage?

Engaging our service will provide you enhanced control over the value of your Swiss Cottage leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Swiss Cottage Lease Extension Case Studies:

Oliver, Swiss Cottage, North London

Two years ago Oliver, came very close to the 80-year mark with the lease on his one bedroom apartment in Swiss Cottage. Having purchased his home two decades ago, the unexpired term was of minimal relevance. As luck would have it, he became aware that he would soon be paying an inflated amount for a lease extension. Oliver arranged for a lease extension just under the wire last May. Oliver and the landlord who owned the flat above ultimately settled on sum of £6,000 . If the lease had fallen below 80 years, the amount would have increased by at least £850.

Swiss Cottage case:

Last Summer we were contacted by Mr T Howard , who completed a ground floor flat in Swiss Cottage in June 2002. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparable residencies in Swiss Cottage with 100 year plus lease were in the region of £203,200. The mid-range ground rent payable was £65 invoiced annually. The lease terminated in 2087. Given that there were 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus fees.