Main reasons to start your Newington lease extension

Why you should commence your Newington lease extension today:

A Newington lease depreciates with the years remaining on the lease.

It’s a harsh certainty that a Newington residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Newington property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining falls under eighty 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. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Newington will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.

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

Leasehold residencies in Newington with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may not finance a property on a short lease

Lenders are tightening their criteria and many now expect flats to have a minimum of sixty if not seventy years left at the expiry of the mortgage. As many flats in Newington were built in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

Why use us for your lease extension in Newington?

Irrespective of whether you are a tenant or a freeholder in Newington,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 in-depth market knowledge and the close ties they enjoy with Newington valuers.

Newington Lease Extension Example Cases:

Harry, Newington, South East London

Last October Harry, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Newington. Having bought his flat two decades ago, the length of the lease was of little interest. Thankfully, he realised he would soon be paying an escalated premium for a lease extension. Harry arranged for a lease extension just in the nick of time in August. Harry and the freeholder via the managing agents ultimately settled on sum of £5,500 . If the lease had dipped to less than eighty years, the figure would have increased by at least £1,125.

Newington case:

Mr K Stewart acquired a one bedroom flat in Newington in September 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Newington with a long lease were in the region of £275,000. The average amount of ground rent was £45 collected quarterly. The lease terminated in 2095. Given that there were 69 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.