Top reasons for Downe lease extension

Main reasons to commence your Downe lease extension today:

Increase your lease and increase your Downe property value

With a domestic leasehold property in Downe, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years left. Anyone in Downe with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has under eighty years remaining, under the current statute the landlord can calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold properties in Downe with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Lenders will not lend on a short lease

Lenders are making their criteria more stringent and a meaningful number now expect flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Given that a number of flats in Downe were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Downe lease extensions?

Regardless 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 in-depth market knowledge and the close ties they enjoy with Downe valuers.

Downe Lease Extension Case Summaries:

Toby, Downe, South East London

Half a year ago Toby, came seriously near to the 80-year threshold with the lease on his garden flat in Downe. In buying his home two decades ago, the length of the lease was of little concern. Fortunately, he noticed he needed to take steps soon on Extending the lease. Toby arranged for a lease extension just ahead of time last August. Toby and the freeholder subsequently agreed on a premium of £5,000 . If he had missed the deadline, the price would have increased by at least £950.

Downe case:

In 2013 we were contacted by Mr and Mrs. M Cooper who, having bought a recently refurbished flat in Downe in May 1997. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparable properties in Downe with a long lease were worth £267,600. The average amount of ground rent was £65 collected quarterly. The lease lapsed on 25 July 2093. Considering the 67 years left we estimated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of expenses.