Top reasons for Downe lease extension

Main reasons to commence your Downe lease extension today:

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

With a domestic leasehold property in Downe, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Anyone in Downe with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years outstanding, under the current statute the freeholder is entitled to calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.

Downe property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.

Lenders may not issue a mortgage on a short lease

Almost all banks and building societies require a lengthy amount of time remaining on a leasehold residence before they will contemplate lending on it. Even if you don't require a mortgage, you should be aware that it is reasonable to assume that someone wishing to purchase your property in the future might well do, so if they are unable to secure a mortgage, then the financial worth of your property will likely be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to lend on

Why use us for your lease extension in Downe?

Irrespective of whether you are a tenant or a freeholder in Downe,the lease extension experts that we work with will always be prepared 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 Example Cases:

Olivia, Downe, South East London,

In the wake of 6 months of protracted correspondence with the freeholder of her leasehold flat in Downe, Olivia initiated the lease extension process as the eighty year threshold was fast approaching. The legal work was concluded in October 2009. The landlord’s fees were restricted to slightly above 650 GBP.

Downe case:

In 2014 we were approached by Dr B Bell who, having took over the lease of a garden apartment in Downe in May 2007. The dilemma was if we could estimate the price could be for a 90 year lease extension. Identical homes in Downe with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 collected quarterly. The lease end date was in 2096. Taking into account 71 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.