Main reasons to start your Avery Hill lease extension

Why you should start your Avery Hill lease extension today:

Increase your lease and increase your Avery Hill property value

The re-sale value of a leasehold property in Avery Hill is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed ahead of the eighty year mark. Statute entitles Avery Hill qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose 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 has roughly the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.

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

Lenders do not grant a mortgage on short residential leases. You most probably encounter problems where you need to sell your flat in Avery Hill if the unexpired lease term is below the criteria set by the majority of mortgage companies. Different mortgage companies have varying criteria but generally they are looking for an unexpired term of at least seventy years.

What makes us experts in Avery Hill lease extensions?

The conveyancers that we work with handle Avery Hill 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 conveyancer we work with provide it.

Avery Hill Lease Extension Case Studies:

Omar, Avery Hill, South East London

Last Christmas Omar, came critically close to the eighty-year threshold with the lease on his leasehold flat in Avery Hill. In buying his home two decades ago, the unexpired term was of little importance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Omar was able to extend his lease just ahead of time last January. Omar and the freeholder subsequently agreed on an amount of £6,000 . If he not met the deadline, the price would have increased by a minimum £1,000.

Avery Hill case:

Dr F Johnson purchased a first floor apartment in Avery Hill in March 2011. The question was if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Avery Hill with an extended lease were valued about £246,800. The mid-range ground rent payable was £60 billed every twelve months. The lease lapsed in 2076. Considering the 50 years outstanding we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 not including fees.