Why you should start your Herne Hill lease extension

Main reasons to commence your Herne Hill lease extension today:

Increase your lease and increase your Herne Hill property value

Herne Hill leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Herne Hill will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain cases you may not be entitled. There are also strict timetables and steps to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.

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

Leasehold properties in Herne Hill with more than one hundred years remaining on the lease are sometimes 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may decide not to lend with a short lease

Most high street banks are tightening their criteria and many now expect flats to have a minimum of sixty if not seventy years remaining at the end of the mortgage. Given that many flats in Herne Hill were built in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.

Why use us for your lease extension in Herne Hill?

Regardless of whether you are a tenant or a freeholder in Herne Hill,the lease extension experts 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 Herne Hill valuers.

Herne Hill Lease Extension Case Studies:

Ethan, Herne Hill, South East London

Last year Ethan, came very near to the 80-year mark with the lease on his one bedroom flat in Herne Hill. Having purchased his property twenty years previously, the lease term was of minimal importance. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Ethan arranged for a lease extension just under the wire in May. Ethan and the freeholder ultimately agreed on sum of £5,000 . If the lease had gone lower than eighty years, the figure would have escalated by at least £1,050.

Herne Hill case:

In 2014 we were called by Mr and Mrs. E Thomas who, having completed a garden flat in Herne Hill in January 2002. The question was if we could estimate the premium would be for a 90 year lease extension. Identical flats in Herne Hill with a long lease were valued around £205,000. The average ground rent payable was £50 billed yearly. The lease ran out in 2105. Taking into account 79 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.