Why you should start your Eltham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Eltham property value

Unfortunately that a Eltham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Eltham property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Eltham will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to issue a mortgage with a short lease

Lenders will not grant a mortgage on short residential leases. You are likely to experience problems where you need to sell your flat in Eltham if the unexpired term of your lease is below the criteria set by the majority of lenders. Different lenders have varying criteria but generally theyrequire a minimum remaining lease term of seventy years.

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

Engaging our service will provide you better control over the value of your Eltham leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Eltham Lease Extension Case Studies:

Mason, Eltham, South East London

Twenty four months ago Mason, started to get near to the eighty-year mark with the lease on his studio apartment in Eltham. Having bought his property two decades ago, the length of the lease was of no significance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Mason was able to extend his lease at the eleventh hour in August. Mason and the landlord eventually agreed on an amount of £5,000 . If the lease had slid to less than 80 years, the sum would have become more exhorbitant by at least £1,025.

Eltham case:

Last Autumn we were e-mailed by Dr T Laurent , who moved into a studio apartment in Eltham in February 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Eltham with 100 year plus lease were valued about £189,000. The average ground rent payable was £55 billed monthly. The lease concluded on 5 August 2079. Considering the 53 years left we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus professional charges.