Why you should start your Worcester Park lease extension

Top reasons for lease extension now:

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

Unfortunately that a Worcester Park 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 early years due to the reduction being disguised by increases in the Worcester Park property prices.Where your lease has approximately ninety years left, you should 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 dips lower than 80 years - otherwise a higher amount will be payable. Most leasehold owners in Worcester Park will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations 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 throughout the formalities.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to finance a property on a short lease

Most high street banks are tightening their criteria and a meaningful number now expect flats to have at least sixty if not seventy years left at the expiry of the mortgage. Given that plenty of flats in Worcester Park were built in the fifties, sixties and seventies this means many now need to be extended if they wish to get a mortgage.

What makes us experts in Worcester Park lease extensions?

Irrespective of whether you are a tenant or a landlord in Worcester Park,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Worcester Park valuers.

Worcester Park Lease Extension Example Cases:

Edward, Worcester Park, Surrey,

Edward owned a studio flat in Worcester Park being marketed with a lease of just over fifty eight years unexpired. Edward on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Edward to invoke his statutory right. Edward obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.

Worcester Park case:

Mr D Baker acquired a newly refurbished flat in Worcester Park in October 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Worcester Park with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ended on 12 February 2102. Considering the 77 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.