Main reasons to start your South Woodford lease extension

Top reasons for lease extension now:

Increase your lease and increase your South Woodford property value

The re-sale value of a leasehold property in South Woodford depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the lease extension process when the lease still has 82 years remaining so that all matters can be concluded in advance of the eighty year threshold. Current legislation entitles South Woodford qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold premises in South Woodford with in excess of one hundred years left 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to finance a property on a short lease

Lenders do not like short residential leases. You most probably encounter problems if you wish to sell your flat in South Woodford if the remaining lease term is below the criteria set by most banks and building societies. Different mortgage companies have different criteria but in the main they are looking for an unexpired term of at least 65 years.

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

Regardless of whether you are a tenant or a landlord in South Woodford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Woodford valuers.

South Woodford Lease Extension Example Cases:

Francesca, South Woodford, North East London,

Following lengthy discussions with the landlord of her garden flat in South Woodford, Francesca initiated the lease extension process as the eighty year threshold was swiftly coming. The transaction was finalised in August 2010. The landlord’s fees were kept to an absolute minimum.

South Woodford case:

Last month we were approach by Mr and Mrs. R Patel , who owned a first floor apartment in South Woodford in February 2007. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative flats in South Woodford with an extended lease were valued around £250,000. The average ground rent payable was £50 collected per annum. The lease finished on 16 May 2095. Given that there were 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.