Why you should start your Dulwich lease extension

Top reasons for lease extension now:

Increase your lease and increase your Dulwich property value

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Dulwich. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Dulwich have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Dulwich lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension

An extended lease is almost the same value as a freehold

Leasehold residencies in Dulwich with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not lend on a short lease

Lending institutions have set criteria when lending funds charged on leasehold property. Many will simply refuse lend at all once an unexpired lease term slips lower than a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than 75 years as acceptable security. In addition to this being important when selling, it is also relevant if you are seeking to refinance your Dulwich home.

What makes us experts in Dulwich lease extensions?

Retaining our service gives you better control over the value of your Dulwich leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Dulwich Lease Extension Case Summaries:

Alexander, Dulwich, South East London

In 2014 Alexander, started to get near to the 80-year threshold with the lease on his first floor flat in Dulwich. Having purchased his property two decades ago, the lease term was of little concern. Fortunately, he recognised he needed to take steps soon on Extending the lease. Alexander was able to extend his lease at the eleventh hour in July. Alexander and the freeholder via the management company subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £975.

Dulwich case:

In 2010 we were approached by Mr and Mrs. N Turner who, having took over the lease of a ground floor apartment in Dulwich in March 2004. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable homes in Dulwich with a long lease were in the region of £300,000. The average ground rent payable was £50 collected annually. The lease ran out in 2102. Having 76 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.