Top reasons for Upton Park lease extension

Top reasons for lease extension now:

A Upton Park leasehold property depreciates with the years remaining on the lease.

Upton Park leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Upton Park tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Upton Park you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Upton Park with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to issue a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become nervous at around 75 years. This may cause difficulties as and when you need to dispose of or refinance your property as it will be effectively unmortgageable. Even though you may not have an immediate plan to sell but when you do your buyer must hold off for a couple of years before they can exercise the right to a a lease extension.

Why use us for your lease extension in Upton Park?

Retaining our service gives you increased control over the value of your Upton Park leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Upton Park Lease Extension Case Summaries:

William, Upton Park, London,

William was the the leasehold owner of a studio apartment in Upton Park on the market with a lease of a few days over 61 years outstanding. William informally contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were William to exercise his statutory right. William procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Upton Park case:

Last month we were e-mailed by Mr Jude Miller , who bought a garden apartment in Upton Park in October 2011. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Upton Park with a long lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ended on 26 March 2104. Having 78 years outstanding we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.