Why you should commence your Upney lease extension

Why you should commence your Upney lease extension today:

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

It’s an underpublicised certainty that a Upney residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Upney property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Upney will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.

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

Leasehold premises in Upney with in excess of 100 years left on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and service charges justify it.

Lenders may decide not to finance a property on a short lease

Banks and building societies are inclined not grant a mortgage on short residential leases. You are likely to experience problems if you need to sell your flat in Upney if the remaining lease term is under the criteria set by the majority of mortgage companies. Different lenders have varying criteria but in the main they are looking for a minimum remaining lease term of seventy years.

What makes us experts in Upney lease extensions?

Retaining our service will provide you enhanced control over the value of your Upney leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Upney Lease Extension Example Cases:

Amy, Upney, London,

Following lengthy negotiations with the landlord of her studio flat in Upney, Amy initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction was finalised in October 2007. The freeholder’s charges were kept to an absolute minimum.

Upney case:

In 2010 we were called by Ms Imogen Rogers who, having acquired a one bedroom apartment in Upney in April 2007. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Upney with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 billed yearly. The lease expired on 16 April 2096. Given that there were 70 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.