Why you should start your Bexleyheath lease extension

Why you should commence your Bexleyheath lease extension today:

Increase your lease and increase your Bexleyheath property value

With a long leasehold premises in Bexleyheath, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years left. Leasehold owners in Bexleyheath with a lease nearing 81 years remaining should seriously think of extending it sooner than later. When a lease has under 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not grant a mortgage with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get nervous at around 75 years. This may be problematic as and when you need to dispose of or refinance your flat as it will be practically unmortgageable. You might not have an imminent plan to sell but when you do your purchaser must hold off for two years before they can exercise the right to a an extension to the lease.

What makes us experts in Bexleyheath lease extensions?

Lease extensions in Bexleyheath can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Bexleyheath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Bexleyheath Lease Extension Case Studies:

Max, Bexleyheath, South East London

Last year Max, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Bexleyheath. In buying his flat two decades ago, the length of the lease was of minimal relevance. Fortunately, he noticed he needed to take steps soon on a lease extension. Max arranged for a lease extension just under the wire in January. Max and the freeholder via the managing agents eventually settled on sum of £5,500 . If the lease had descended to less than eighty years, the amount would have become more costly by a minimum £925.

Bexleyheath case:

Dr E Scott completed a purpose-built flat in Bexleyheath in September 2008. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Bexleyheath with a long lease were worth £254,200. The average ground rent payable was £60 collected per annum. The lease came to a finish on 28 July 2077. Taking into account 51 years unexpired we calculated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 plus fees.