Why you should start your Herne Hill lease extension

Top reasons for lease extension now:

Increase your lease and increase your Herne Hill property value

Unfortunately that a Herne Hill residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Herne Hill property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining slips below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Herne Hill will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.

Herne Hill property with a lease extension has roughly the same value as a freehold

Leasehold premises in Herne Hill with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies will not finance a property on a short lease

Lenders are tightening their criteria and many now want flats to have a minimum of sixty if not seventy years left at the end of the mortgage. As many flats in Herne Hill were created in the 1950s, 1960s and 1970s as a result many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Herne Hill lease extensions?

Lease extensions in Herne Hill can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Herne Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Herne Hill Lease Extension Case Studies:

Teddy, Herne Hill, South East London

Half a year ago Teddy, started to get near to the eighty-year threshold with the lease on his garden flat in Herne Hill. Having bought his property 18 years ago, the unexpired term was of little relevance. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Teddy arranged for a lease extension just under the wire last September. Teddy and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If he had missed the deadline, the amount would have become more exhorbitant by a minimum £900.

Herne Hill case:

In 2013 we were approached by Mr and Mrs. I Bell who, having acquired a purpose-built flat in Herne Hill in August 2004. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Herne Hill with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 billed every twelve months. The lease concluded on 1 October 2090. Given that there were 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including fees.