Top reasons for Downe lease extension

Why you should start your Downe lease extension today:

Increase your lease and increase your Downe property value

Downe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Downe tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Downe you must see if your lease has between seventy and ninety years remaining. There are good reasons why a Downe leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Downe with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Lending institutions may decide not to issue a mortgage with a short lease

Lending institutions have set criteria when lending funds secured on leasehold property. Many will simply refuse lend at all once the residual lease term drops lower than a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than 75 years suitable security. In addition to impacting your ability to sell, it is also relevant where you are seeking to refinance your Downe property.

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

Engaging our service gives you enhanced control over the value of your Downe leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Downe Lease Extension Case Summaries:

Jackson, Downe, South East London,

Jackson was the the leasehold owner of a 2 bedroom apartment in Downe on the market with a lease of just over 61 years outstanding. Jackson on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.

Downe case:

Mrs J Edwards bought a garden apartment in Downe in April 1995. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable premises in Downe with a long lease were in the region of £218,400. The mid-range ground rent payable was £60 collected annually. The lease ended in 2085. Given that there were 59 years as a residual term we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 plus legals.