Main reasons to commence your Beddington lease extension

Why you should commence your Beddington lease extension today:

A Beddington leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Beddington residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Beddington property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Beddington will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

Beddington property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lenders will not grant a mortgage on a short lease

Mortgage lenders have specific criteria when lending monies secured on leasehold homes. Some will simply not lend at all once an unexpired lease term slips below a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired below seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are seeking to remortgage your Beddington home.

Get in touch with one of our Beddington lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake 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 conveyancer we work with provide it.

Beddington Lease Extension Example Cases:

Harrison, Beddington, South London

Last Summer Harrison, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Beddington. Having purchased his home two decades ago, the length of the lease was of minimal interest. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Harrison extended the lease just in the nick of time in September. Harrison and the landlord subsequently settled on sum of £5,000 . If the lease had slipped below 80 years, the price would have increased by a minimum £850.

Beddington case:

Last Spring we were approach by Dr C Parker , who bought a one bedroom apartment in Beddington in August 2007. The question was if we could approximate the premium would be for a 90 year extension to my lease. Identical residencies in Beddington with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease ended in 2094. Having 68 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.