Why you should start your Worcester Park lease extension

Why you should start your Worcester Park lease extension today:

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

It’s a harsh truth that a Worcester Park residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Worcester Park property market.Once your lease nears 85ish years, you should start thinking about 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 below eighty years - otherwise a higher premium will be payable. Most flat owners in Worcester Park will be able to extend under the legislation; however a conveyancer should 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 be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor 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 more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Many banks and building societies will not lend on a lease with under 70 years left to run - although this varies between mortgage companies. A buyer will no doubt encounter difficulties in obtaining a mortgage and this will result in your Worcester Park property being difficult to sell or remortgage.

Get in touch with one of our Worcester Park lease extension solicitors or enfranchisement solicitors

Using our service gives you better control over the value of your Worcester Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Worcester Park Lease Extension Example Cases:

Henry, Worcester Park, Surrey

16 months ago Henry, started to get near to the 80-year threshold with the lease on his ground floor apartment in Worcester Park. In buying his home two decades ago, the unexpired term was of minimal bearing. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. Henry arranged for a lease extension just ahead of time in July. Henry and the freeholder via the managing agents ultimately settled on sum of £5,000 . If he not met the deadline, the premium would have escalated by at least £1,100.

Worcester Park case:

Last month we were contacted by Dr Sarah Mitchell , who was assigned a lease of a first floor apartment in Worcester Park in May 1995. The question was if we could estimate the price could be to extend the lease by ninety years. Similar flats in Worcester Park with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 billed yearly. The lease expiry date was on 18 March 2089. Having 63 years outstanding we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including professional charges.