Main reasons to start your Tolworth lease extension

Main reasons to commence your Tolworth lease extension today:

Increase your lease and increase your Tolworth property value

The re-sale value of a leasehold property in Tolworth depends on how long the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised in advance of the 80 year threshold. Current legislation entitles Tolworth qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to lend with a short lease

Almost all banks and building societies insist on a lengthy amount of time left on a leasehold property before they will contemplate it as adequate security. Even if you don't require a mortgage, you should bear in mind that it is reasonable to assume that someone wishing to buy your property in the future might well do, so in the event that they are not able to obtain a mortgage, then the market price of your property will likely suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are prepared to accept

What makes us experts in Tolworth lease extensions?

Retaining our service will provide you better control over the value of your Tolworth leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Tolworth Lease Extension Case Summaries:

Sam, Tolworth, South West London,

Sam was the the leasehold owner of a high value apartment in Tolworth being sold with a lease of fraction over 59 years left. Sam on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.

Tolworth case:

In 2012 we were called by Mrs Mollie Flores who, having acquired a studio flat in Tolworth in February 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable homes in Tolworth with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 invoiced per annum. The lease concluded in 2098. Considering the 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.