Why you should start your Eltham lease extension

Top reasons for lease extension now:

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

When it comes to residential leasehold property in Eltham, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Residents in Eltham with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below 80 years remaining, under the current legislation the landlord can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold premises in Eltham with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders will not finance a property with a short lease

Mortgage lenders have specific criteria when loaning monies secured on leasehold property. Some will simply not lend at all once an unexpired lease term slips lower than a specified unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are seeking to refinance your Eltham property.

Why use us for your lease extension in Eltham?

Regardless of whether you are a tenant or a landlord in Eltham,the lease extension solicitors 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 Summaries:

Milo, Eltham, South East London,

Milo owned a studio flat in Eltham being marketed with a lease of just over 59 years remaining. Milo informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.

Eltham case:

In 2014 we were e-mailed by Dr Gabriel Richardson who, having completed a newly refurbished flat in Eltham in January 2012. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparative homes in Eltham with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced yearly. The lease came to a finish in 2087. Considering the 61 years left we approximated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 plus fees.