Why you should commence your The Borough lease extension

Main reasons to commence your The Borough lease extension today:

A The Borough leasehold property depreciates with the years remaining on the lease.

The Borough 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 becomes more expensive. It is the case that most The Borough tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in The Borough you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

The Borough property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lenders may decide not to grant a mortgage on a short lease

Banks and building societies are really clamping down as regards to homes in The Borough with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus reducing your market.

Why use us for your lease extension in The Borough?

Retaining our service gives you increased control over the value of your The Borough leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

The Borough Lease Extension Case Studies:

Alex, The Borough, South East London

In 2014 Alex, started to get near to the 80-year mark with the lease on his purpose- built apartment in The Borough. Having purchased his home 19 years previously, the lease term was of little relevance. by good luck, he recognised he needed to take steps soon on Extending the lease. Alex was able to extend his lease just in the nick of time in June. Alex and the landlord subsequently agreed on an amount of £5,500 . If the lease had gone lower than eighty years, the sum would have increased by at least £1,125.

The Borough case:

Mr and Mrs. H Ricardo was assigned a lease of a one bedroom flat in The Borough in November 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in The Borough with an extended lease were worth £285,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ended on 16 November 2106. Taking into account 80 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.

The Borough case:

Mr and Mrs. H Fournier moved into a one bedroom flat in The Borough in June 1998. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable premises in The Borough with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease concluded on 3 September 2086. Having 60 years left we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus costs.