Why you should start your Upper Clapton lease extension

Why you should commence your Upper Clapton lease extension today:

Increase your lease and increase your Upper Clapton property value

It’s an underpublicised truth that a Upper Clapton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Upper Clapton property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Upper Clapton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.

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

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Mortgage lenders may not issue a mortgage with a short lease

The trend since 2008 has been for lenders to tighten lending requirements generally - 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 banks has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

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

Upper Clapton Lease Extension Case Summaries:

Danielle, Upper Clapton, London,

Trailing protracted correspondence with the landlord of her first floor apartment in Upper Clapton, Danielle commenced the lease extension process just as the lease was coming close to the all-important eighty-year mark. The lease extension was concluded in September 2013. The freeholder’s fees were kept to an absolute minimum.

Upper Clapton case:

Last Autumn we were e-mailed by Mr O Simon , who acquired a garden flat in Upper Clapton in January 2009. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Upper Clapton with an extended lease were in the region of £210,000. The average ground rent payable was £50 billed every twelve months. The lease elapsed on 5 April 2106. Considering the 80 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.