Main reasons to commence your Beddington lease extension

Main reasons to commence your Beddington lease extension today:

Increase your lease and increase your Beddington property value

For anyone whose Beddington home is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Beddington with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. In the past lenders were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Beddington lease extensions?

The lawyers that we work with handle Beddington 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.

Beddington Lease Extension Example Cases:

Noah, Beddington, South London,

Noah was the the leasehold proprietor of a 2 bedroom apartment in Beddington being marketed with a lease of fraction over fifty eight years outstanding. Noah on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Noah to exercise his statutory right. Noah procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Beddington case:

Dr D Moreau took over the lease of a one bedroom apartment in Beddington in April 1995. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical flats in Beddington with an extended lease were in the region of £173,800. The average ground rent payable was £65 collected monthly. The lease concluded in 2080. Taking into account 55 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.