It’s an underpublicised certainty that a Bexley residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Bexley property market.Once your lease nears 85ish years, 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 slips below eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Bexley will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if 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 is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Leeds Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with procure Bexley 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.
Two years ago Luca, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Bexley. In buying his home two decades ago, the length of the lease was of little relevance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Luca was able to extend his lease just ahead of time in June. Luca and the landlord subsequently settled on an amount of £5,000 . If he failed to meet the deadline, the sum would have increased by at least £850.
In 2009 we were phoned by Ms Georgina Gómez who, having bought a purpose-built flat in Bexley in April 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Bexley with 100 year plus lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected per annum. The lease ran out on 23 September 2078. Given that there were 52 years unexpired we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.
An example of a Lease Extension matter before the tribunal for a Bexley premises is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case related to 1 flat.