Top reasons for Bexleyheath lease extension

Top reasons for lease extension now:

A Bexleyheath lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Bexleyheath is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that all matters can be addressed prior to the 80 year cut off point. Current legislation enables Bexleyheath 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 reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold premises in Bexleyheath with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may not finance a property with a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria across the board - 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 lenders has increased. In the past mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a landlord in Bexleyheath,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bexleyheath valuers.

Bexleyheath Lease Extension Example Cases:

Alexander, Bexleyheath, South East London,

Alexander was the the leasehold proprietor of a studio flat in Bexleyheath on the market with a lease of a little over 61 years unexpired. Alexander informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Alexander to invoke his statutory right. Alexander procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.

Bexleyheath case:

Mr A Cook bought a one bedroom apartment in Bexleyheath in February 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar residencies in Bexleyheath with a long lease were valued about £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed in 2082. Given that there were 56 years remaining we approximated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of fees.