Main reasons to start your Avery Hill lease extension

Why you should start your Avery Hill lease extension today:

A Avery Hill leasehold property depreciates with the years remaining on the lease.

It’s a harsh truth that a Avery Hill residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Avery Hill property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining falls below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Avery Hill will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.

An extended lease is almost the same value as a freehold

Leasehold properties in Avery Hill with over one hundred years outstanding on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and service charges merit it.

Lenders will not finance a property with a short lease

The trend since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Avery Hill?

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 conveyancing solicitor we work with provide it.

Avery Hill Lease Extension Example Cases:

Robyn, Avery Hill, South East London,

Following protracted negotiations with the freeholder of her leasehold apartment in Avery Hill, Robyn commenced the lease extension process just as the lease was approaching the critical eighty-year deadline. The legal work was finalised in November 2011. The freeholder’s charges were kept to an absolute minimum.

Avery Hill case:

Dr Olivia Bertrand acquired a one bedroom flat in Avery Hill in October 2004. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparative properties in Avery Hill with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished in 2099. Considering the 73 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.