Top reasons for Eltham lease extension

Top reasons for lease extension now:

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

When it comes to long leasehold property in Eltham, you effectively rent it for a certain period 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 lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Residents in Eltham with a lease approaching 81 years remaining should seriously consider extending it sooner than later. Once a lease has under eighty years remaining, under the current statute the freeholder can calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

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

Leasehold properties in Eltham with over one hundred 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lenders may not finance a property on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become jittery at around 75 years. This may be problematic as and when you need to dispose of or refinance your flat as it will be effectively unmortgageable. Even though you may have no immediate plan to sell but when you do your buyer will have to wait a couple of years before they can commence the legal procedures for an extension to the lease.

Why use us for your lease extension in Eltham?

Regardless of whether you are a tenant or a freeholder in Eltham,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 Eltham valuers.

Eltham Lease Extension Case Studies:

Joshua, Eltham, South East London,

Joshua owned a studio apartment in Eltham on the market with a lease of just over sixty years left. Joshua informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.

Eltham case:

Last Christmas we were called by Mr and Mrs. O Clark , who purchased a studio flat in Eltham in June 2006. We are asked if we could estimate the price would be to extend the lease by ninety years. Similar premises in Eltham with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished in 2095. Considering the 69 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.