Why you should start your 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 residential leasehold premises in Eltham, you are actually purchasing a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should 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 notably when there are less than eighty years remaining. Anyone in Eltham with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has below eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.

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

Leasehold residencies in Eltham with over 100 years unexpired on the lease are often regarded as a ‘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 buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders may not lend with a short lease

Mortgage companies do not like short residential leases. You are likely to encounter difficulties if you want to sell your flat in Eltham if the unexpired lease term is less than the criteria set by most banks and building societies. Different mortgage companies have varying criteria but generally theyrequire an unexpired term of at least 65 years.

Get in touch with one of our Eltham lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Eltham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Eltham valuers.

Eltham Lease Extension Case Summaries:

Riley, Eltham, South East London,

Riley was the the leasehold owner of a conversion flat in Eltham on the market with a lease of just over sixty years remaining. Riley on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Riley to exercise his statutory right. Riley obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.

Eltham case:

In 2012 we were phoned by Mr Omar García who, having took over the lease of a garden apartment in Eltham in May 2004. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical flats in Eltham with an extended lease were valued about £208,600. The mid-range amount of ground rent was £60 collected yearly. The lease ended in 2083. Given that there were 57 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus expenses.