Why you should start your Temple Mills lease extension

Main reasons to commence your Temple Mills lease extension today:

Increase your lease and increase your Temple Mills property value

Temple Mills leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Temple Mills enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Temple Mills you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions may not lend with a short lease

The propensity since over the last decade has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Temple Mills lease extensions?

Irrespective of whether you are a tenant or a freeholder in Temple Mills,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Temple Mills valuers.

Temple Mills Lease Extension Case Studies:

Cameron, Temple Mills, North East London,

Cameron owned a 2 bedroom apartment in Temple Mills on the market with a lease of a few days over 72 years unexpired. Cameron informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Cameron to invoke his statutory right. Cameron procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Temple Mills case:

In 2010 we were called by Mr I Jones who, having acquired a studio flat in Temple Mills in January 1995. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical residencies in Temple Mills with an extended lease were worth £280,000. The average ground rent payable was £55 billed annually. The lease elapsed in 2104. Considering the 78 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.

Temple Mills case:

In 2009 we were e-mailed by Mr G Bernard who, having moved into a one bedroom flat in Temple Mills in February 1999. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Temple Mills with 100 year plus lease were valued about £186,000. The average amount of ground rent was £65 billed annually. The lease elapsed in 2084. Given that there were 58 years unexpired we estimated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 not including expenses.