Why you should commence your West Byfleet lease extension

Main reasons to commence your West Byfleet lease extension today:

A West Byfleet lease depreciates with the years remaining on the lease.

It’s an underpublicised truth that a West Byfleet residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the West Byfleet property prices.Once your lease nears 85ish years, you need to start considering 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 amount will be payable. Most flat owners in West Byfleet will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.

West Byfleet property with a lease extension has roughly the same value as a freehold

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

Lenders may not finance a property on a short lease

Most banks and building societies insist on a lengthy amount of time left on any leasehold residence before they will contemplate lending on it. Even if you don't need a mortgage, you should be mindful that it is reasonable to assume that someone intending to acquire your property in the future might well do, so if they are not able to obtain a mortgage, then the value of the property will likely be adversely impacted. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are willing to accept

Get in touch with one of our West Byfleet lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake West Byfleet 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 Byfleet Lease Extension Example Cases:

Callum, West Byfleet, Surrey,

Callum owned a studio apartment in West Byfleet being sold with a lease of just over 72 years outstanding. Callum on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Callum to invoke his statutory right. Callum procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.

West Byfleet case:

Mrs Niamh Clarke acquired a one bedroom flat in West Byfleet in February 1999. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Comparative residencies in West Byfleet with a long lease were worth £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease elapsed in 2096. Having 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.

West Byfleet case:

Mr and Mrs. B Bertrand was assigned a lease of a garden apartment in West Byfleet in May 2006. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar flats in West Byfleet with a long lease were worth £223,400. The average ground rent payable was £60 billed per annum. The lease concluded in 2085. Given that there were 59 years remaining we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 not including legals.