Top reasons for Downe lease extension

Top reasons for lease extension now:

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

The re-sale value of a leasehold property in Downe depends on how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years to run so that formalities can be finalised well before the eighty year mark. Current legislation entitles Downe qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not loan monies on a short lease

Banks and building societies are distinct in their lending requirements. Some draw the line at seventy five years left on the lease; others may be willing to lend with anything with more than seventy years. Below 60 years, it may be problematic to obtain a mortgage in the first place.

Why use us for your lease extension in Downe?

Irrespective of whether you are a tenant or a landlord in Downe,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Downe valuers.

Downe Lease Extension Case Studies:

Reuben, Downe, South East London

In 2014 Reuben, started to get close to the eighty-year threshold with the lease on his studio apartment in Downe. In buying his property 19 years ago, the unexpired term was of minimal significance. Luckily, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Reuben arranged for a lease extension just ahead of time in January. Reuben and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If he had missed the deadline, the amount would have become more costly by a minimum £850.

Downe case:

Last Christmas we were e-mailed by Mr Elijah Bonnet , who moved into a ground floor apartment in Downe in January 2008. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative premises in Downe with a long lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2097. Having 71 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.