Why you should start your Tooting lease extension

Why you should start your Tooting lease extension today:

Increase your lease and increase your Tooting property value

Tooting leases on domestic properties are gradually losing value. if 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 remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Tooting will usually qualify for 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 timetables and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

Leasehold premises in Tooting 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not lend with a short lease

The trend since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Tooting lease extensions?

Retaining our service gives you better control over the value of your Tooting leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Tooting Lease Extension Case Summaries:

Leo, Tooting, South West London,

Leo owned a conversion apartment in Tooting on the market with a lease of a little over fifty eight years remaining. Leo informally approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Leo to invoke his statutory right. Leo obtained expert legal guidance and secured satisfactory deal informally and readily saleable.

Tooting case:

In 2014 we were contacted by Mr and Mrs. K Jackson who, having owned a first floor apartment in Tooting in August 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative flats in Tooting with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced per annum. The lease terminated on 20 January 2102. Taking into account 76 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.