Main reasons to start your South Woodford lease extension

Why you should commence your South Woodford lease extension today:

Increase your lease and increase your South Woodford property value

The market value of a leasehold property in South Woodford depends on how long the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded prior to the eighty year cut off point. Current legislation entitles South Woodford qualifying lessees to an additional term of ninety years over and above the existing term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.

Lenders may decide not to finance a property on a short lease

Lenders are tightening their criteria and many now require flats to have at least sixty if not seventy years remaining at the expiry of the mortgage. As a number of flats in South Woodford were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in South Woodford lease extensions?

The conveyancing solicitors 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 conveyancing solicitor we work with provide it.

South Woodford Lease Extension Case Summaries:

Jordan, South Woodford, North East London,

Off the back of protracted discussions with the landlord of her one bedroom flat in South Woodford, Jordan started the lease extension process just as her lease was approaching the critical 80-year threshold. The transaction was concluded in July 2008. The freeholder’s costs were restricted to about 550 pounds.

South Woodford case:

Last year we were e-mailed by Mr Sam Cooper , who bought a studio flat in South Woodford in May 2010. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative premises in South Woodford with 100 year plus lease were valued around £265,000. The average amount of ground rent was £50 invoiced annually. The lease came to a finish in 2099. Having 73 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.