Why you should start your Tonbridge lease extension

Why you should start your Tonbridge lease extension today:

A Tonbridge leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Tonbridge residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Tonbridge property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Tonbridge will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.

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

Leasehold premises in Tonbridge with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may not grant a mortgage with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. In the past banks would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined 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?

The lawyers that we work with handle Tonbridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Tonbridge Lease Extension Example Cases:

Eliot, Tonbridge, Kent,

Eliot was the the leasehold proprietor of a studio flat in Tonbridge on the market with a lease of a few days over 61 years remaining. Eliot informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.

Tonbridge case:

In 2012 we were contacted by Mr and Mrs. D Bonnet who, having purchased a first floor apartment in Tonbridge in October 2002. The question was if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Tonbridge with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed in 2098. Having 72 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.

Tonbridge case:

Last March we were e-mailed by Dr H Brown , who acquired a one bedroom apartment in Tonbridge in February 2010. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical properties in Tonbridge with 100 year plus lease were in the region of £261,600. The mid-range ground rent payable was £60 collected yearly. The lease concluded in 2078. Having 52 years unexpired we estimated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 not including professional charges.