Top reasons for Downe lease extension

Main reasons to commence your Downe lease extension today:

A Downe lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Downe is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be finalised ahead of the eighty year cut off point. Current legislation enables Downe qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

Downe property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lending institutions will not finance a property on a short lease

Banks and Building Societies have set criteria when loaning funds charged on leasehold homes. Some will simply refrain from lending at all once the remaining lease term goes lower than a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining below seventy years as adequate security. In addition to this being important when selling, it is also relevant where you are seeking to remortgage your Downe property.

What makes us experts in Downe lease extensions?

Using our service gives you enhanced control over the value of your Downe leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Downe Lease Extension Case Summaries:

Ibrahim, Downe, South East London,

Ibrahim was the the leasehold proprietor of a high value apartment in Downe on the market with a lease of a little over 72 years left. Ibrahim informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.

Downe case:

Last Winter we were approach by Dr T Simon , who took over the lease of a ground floor flat in Downe in May 2000. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable premises in Downe with an extended lease were worth £243,000. The mid-range ground rent payable was £65 collected per annum. The lease lapsed on 15 May 2089. Considering the 63 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of expenses.