Main reasons to start your Tooting lease extension

Top reasons for lease extension now:

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

As the the remaining lease term of a Tooting domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. Most flat owners in Tooting will qualify for this right; nevertheless a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold premises in Tooting with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 warrant it.

Mortgage lenders will not issue a mortgage with a short lease

Many banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years remaining - although this varies between mortgage companies. A purchaser will likely encounter difficulties to obtain a mortgage and this could result in your Tooting property becoming difficult to sell or to obtain finance on.

Why use us for your lease extension in Tooting?

The lawyers that we work with procure 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:

Kyle, Tooting, South West London

18 months ago Kyle, came critically close to the eighty-year mark with the lease on his two bedroom apartment in Tooting. Having bought his home two decades ago, the length of the lease was of minimal importance. Thankfully, he realised he would soon be paying an inflated amount for a lease extension. Kyle extended the lease just under the wire in January. Kyle and the freeholder subsequently agreed on an amount of £5,000 . If he not met the deadline, the figure would have increased by a minimum £850.

Tooting case:

Mr Leon Roux bought a one bedroom flat in Tooting in September 2011. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Tooting with a long lease were worth £245,000. The average amount of ground rent was £50 billed quarterly. The lease expired in 2094. Given that there were 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.