Why you should start your Thames View lease extension

Why you should commence your Thames View lease extension today:

Increase your lease and increase your Thames View property value

Thames View leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Thames View will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain situations you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.

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

It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies will not finance a property with a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Thames View lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Thames View,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thames View valuers.

Thames View Lease Extension Case Studies:

Teddy, Thames View, London,

Teddy was the the leasehold owner of a studio apartment in Thames View being sold with a lease of a few days over 72 years remaining. Teddy informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

Thames View case:

Dr M Jones bought a one bedroom flat in Thames View in April 2001. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable homes in Thames View with an extended lease were worth £208,600. The average amount of ground rent was £60 invoiced monthly. The lease ended on 12 May 2083. Taking into account 57 years outstanding we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.