Top reasons for South Woodford lease extension

Why you should commence your South Woodford lease extension today:

A South Woodford lease depreciates with the years remaining on the lease.

It’s a harsh truth that a South Woodford residential lease is a wasting asset. As the lease term diminishes 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 South Woodford property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term dips below eighty years, you will then be required 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 additional value that a lease extension will add the property Most flat owners in South Woodford will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.

South Woodford property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent 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 will not grant a mortgage on a short lease

The trend since 2008 has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in South Woodford lease extensions?

The lawyers that we work with undertake South Woodford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

South Woodford Lease Extension Case Studies:

Kate, South Woodford, North East London,

Trailing protracted negotiations with the landlord of her basement flat in South Woodford, Kate commenced the lease extension process as the 80 year deadline was fast coming. The legal work was concluded in April 2009. The landlord’s costs were kept to an absolute minimum.

South Woodford case:

Mrs Danielle Collins completed a one bedroom flat in South Woodford in October 1996. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative properties in South Woodford with an extended lease were valued around £246,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease terminated on 22 May 2076. Given that there were 50 years remaining we approximated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus expenses.