Top reasons for Homerton lease extension

Main reasons to commence your Homerton lease extension today:

Increase your lease and increase your Homerton property value

The value of Homerton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is less than eighty years

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This may be problematic once you wish to sell or remortgage your property as it will be practically unmortgageable. Even though you might not have an immediate desire to sell but when you do your purchaser will have to wait 2 years before being able to commence the legal procedures for a lease extension.

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

Retaining our service gives you enhanced control over the value of your Homerton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Homerton Lease Extension Example Cases:

Alex, Homerton, London

18 months ago Alex, started to get near to the 80-year threshold with the lease on his studio apartment in Homerton. Having purchased his home two decades ago, the length of the lease was of minimal importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Alex arranged for a lease extension just ahead of time in September. Alex and the freeholder in the end agreed on an amount of £5,000 . If he not met the deadline, the amount would have escalated by at least £1,000.

Homerton case:

Mr Adam Lewis purchased a one bedroom flat in Homerton in August 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Similar residencies in Homerton with 100 year plus lease were valued around £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease finished on 14 November 2098. Given that there were 72 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.