Top reasons for Thames Ditton lease extension

Top reasons for lease extension now:

A Thames Ditton lease depreciates with the years remaining on the lease.

Thames Ditton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Thames Ditton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Thames Ditton you really ought to check if your lease has between seventy and 90 years remaining. There are good reasons why a Thames Ditton leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay

An extended lease is almost the same value as a freehold

Leasehold properties in Thames Ditton with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically 50 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 Thames Ditton lease extensions?

Lease extensions in Thames Ditton can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 dealing with Thames Ditton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Thames Ditton Lease Extension Case Summaries:

Nathan, Thames Ditton, Surrey

Two years ago Nathan, came dangerously close to the eighty-year threshold with the lease on his one bedroom flat in Thames Ditton. In buying his property two decades ago, the unexpired term was of no importance. Thankfully, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Nathan was able to extend his lease just under the wire in June. Nathan and the freeholder in the end agreed on the final figure of £5,500 . If the lease had fallen to less than eighty years, the sum would have become more costly by a minimum £975.

Thames Ditton case:

Mrs S Martin acquired a one bedroom apartment in Thames Ditton in August 1998. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar flats in Thames Ditton with a long lease were worth £254,200. The mid-range ground rent payable was £60 invoiced annually. The lease terminated in 2077. Given that there were 51 years remaining we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including fees.