Why you should start your West Barnes lease extension

Why you should start your West Barnes lease extension today:

Increase your lease and increase your West Barnes property value

West Barnes leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most West Barnes tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in West Barnes you should see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may decide not to loan monies on a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 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 West Barnes lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle West Barnes lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

West Barnes Lease Extension Example Cases:

Leon, West Barnes, South West London,

Leon was the the leasehold proprietor of a conversion flat in West Barnes on the market with a lease of fraction over 72 years remaining. Leon on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leon to invoke his statutory right. Leon obtained expert legal guidance and secured an acceptable deal informally and sell the property.

West Barnes case:

Mr and Mrs. K Norbert purchased a one bedroom apartment in West Barnes in June 2011. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparative residencies in West Barnes with an extended lease were valued around £250,000. The average amount of ground rent was £50 collected per annum. The lease elapsed in 2096. Taking into account 70 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.