West Smithfield Lease Extension - Free Consultation

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Top reasons for West Smithfield lease extension

Why you should commence your West Smithfield lease extension today:

A West Smithfield leasehold property depreciates with the years remaining on the lease.

West Smithfield residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.

An extended lease has roughly the same value as a freehold

Leasehold premises in West Smithfield with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders will not grant a mortgage with a short lease

Mortgage companies will not lend on short residential leases. You are likely to encounter difficulties where you want to sell your flat in West Smithfield if the remaining term of your lease is less than the criteria set by most lenders. Different mortgage companies have varying requirements but on the whole they are looking for a minimum remaining lease term of seventy years.

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Godiva Mortgages A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary

Why use us for your lease extension in West Smithfield?

The conveyancing solicitors that we work with undertake West Smithfield 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 conveyancing solicitor we work with provide it.

West Smithfield Lease Extension Case Studies:

Theo, West Smithfield, London,

Theo owned a studio flat in West Smithfield being marketed with a lease of a few days over sixty years left. Theo on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.

West Smithfield case:

In 2012 we were e-mailed by Mrs Kelsey Robinson who, having bought a recently refurbished apartment in West Smithfield in February 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in West Smithfield with an extended lease were valued about £265,200. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out on 16 August 2087. Given that there were 66 years outstanding we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 not including legals.

Decision in Camden

An example of a Lease Extension decision for a West Smithfield premises is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case was in relation to 1 flat. The remaining number of years on the lease was 66.8 years.