Why you should commence your Wandsworth lease extension

Main reasons to start your Wandsworth lease extension today:

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

Unfortunately that a Wandsworth residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Wandsworth property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips below eighty years, you will end up paying half 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 additional value that a lease extension will add the property The majority of leasehold owners in Wandsworth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders will not loan monies on a short lease

Lending institutions have set criteria when loaning monies secured on leasehold property. Many will simply not lend at all once an unexpired lease term slips under a specified unexpired lease term. Many Lending institutions will not consider property with an unexpired below seventy years suitable security. As well as this being important when selling, it is also relevant if you are seeking to remortgage your Wandsworth home.

Why use us for your lease extension in Wandsworth?

Regardless of whether you are a tenant or a landlord in Wandsworth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wandsworth valuers.

Wandsworth Lease Extension Case Studies:

Elijah, Wandsworth, South West London,

Elijah owned a high value flat in Wandsworth being sold with a lease of a few days over 59 years unexpired. Elijah informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking 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. Ordinarily, ground rent would not be due on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert advice and secured satisfactory resolution informally and readily saleable.

Wandsworth case:

Ms Freya Leroy took over the lease of a basement apartment in Wandsworth in October 2005. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Comparable premises in Wandsworth with a long lease were worth £200,800. The average ground rent payable was £65 invoiced quarterly. The lease expired in 2086. Taking into account 60 years as a residual term we approximated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including fees.