Why you should start your Beacontree Heath lease extension

Why you should commence your Beacontree Heath lease extension today:

A Beacontree Heath lease depreciates with the years remaining on the lease.

As the length of the unexpired term of a Beacontree Heath domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Beacontree Heath will qualify for this right; however a lawyer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Beacontree Heath property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.

Lenders may not grant a mortgage on a short lease

The trend since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Beacontree Heath lease extensions?

The conveyancers that we work with procure Beacontree Heath 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.

Beacontree Heath Lease Extension Case Summaries:

Jade, Beacontree Heath, London,

Trailing lengthy correspondence with the freeholder of her purpose-built apartment in Beacontree Heath, Jade started the lease extension process as the 80 year threshold was rapidly approaching. The legal work completed in June 2010. The freeholder’s fees were restricted to below 600 GBP.

Beacontree Heath case:

In 2013 we were e-mailed by Mrs W Garcia who, having acquired a newly refurbished flat in Beacontree Heath in March 2005. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparable residencies in Beacontree Heath with an extended lease were in the region of £206,200. The average ground rent payable was £55 billed annually. The lease ended on 3 January 2082. Given that there were 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.