Why you should commence your Tooting lease extension

Top reasons for lease extension now:

Increase your lease and increase your Tooting property value

When it comes to residential leasehold property in Tooting, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Tooting with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. Once the lease term has under 80 years remaining, under the relevant legislation the freeholder can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.

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

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not loan monies on a short lease

The trend since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

The conveyancing solicitors that we work with handle Tooting 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 conveyancer we work with provide it.

Tooting Lease Extension Case Studies:

Morgan, Tooting, South West London,

In the wake of 6 months of protracted negotiations with the landlord of her basement flat in Tooting, Morgan initiated the lease extension process as the 80 year mark was rapidly nearing. The transaction completed in May 2010. The landlord’s fees were negotiated to a tad over 600 pounds.

Tooting case:

Last November we were contacted by Dr A Adams , who acquired a studio flat in Tooting in February 1998. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparative properties in Tooting with 100 year plus lease were worth £235,200. The average ground rent payable was £45 collected quarterly. The lease ended on 2 January 2092. Having 66 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.