Main reasons to commence your Tonbridge lease extension

Top reasons for lease extension now:

Increase your lease and increase your Tonbridge property value

Tonbridge leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Tonbridge will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.

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

Leasehold properties in Tonbridge with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Lenders may not loan monies on a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Tonbridge lease extensions?

Retaining our service gives you enhanced control over the value of your Tonbridge leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Tonbridge Lease Extension Example Cases:

Bethany, Tonbridge, Kent,

After protracted negotiations with the landlord of her purpose-built apartment in Tonbridge, Bethany started the lease extension process as the 80 year mark was rapidly coming. The lease extension was finalised in November 2009. The freeholder’s costs were kept to an absolute minimum.

Tonbridge case:

In 2014 we were phoned by Mrs S Lefèvre who, having was assigned a lease of a purpose-built flat in Tonbridge in April 2002. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative properties in Tonbridge with 100 year plus lease were worth £191,000. The average ground rent payable was £65 collected every twelve months. The lease elapsed in 2084. Given that there were 58 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of costs.

Tonbridge case:

Last month we were e-mailed by Dr Danielle Ward , who completed a one bedroom flat in Tonbridge in February 2002. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Tonbridge with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 billed annually. The lease ended in 2095. Given that there were 69 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.