Main reasons to commence your Bexleyheath lease extension

Top reasons for lease extension now:

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

The closer a residential lease in Bexleyheath nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years unexpired 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 reason why you should consider extending sooner as opposed to later. The majority of flat owners in Bexleyheath will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.

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

Leasehold residencies in Bexleyheath with more than one hundred years left on the lease are often regarded as a ‘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 buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not grant a mortgage on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - routinely 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

The conveyancers that we work with undertake Bexleyheath 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.

Bexleyheath Lease Extension Example Cases:

Evan, Bexleyheath, South East London

Last year Evan, came perilously close to the 80-year threshold with the lease on his first floor flat in Bexleyheath. Having purchased his flat twenty years previously, the unexpired term was of little relevance. Luckily, he noticed he needed to take steps soon on a lease extension. Evan extended the lease just ahead of time in April. Evan and the landlord eventually settled on a premium of £6,000 . If the lease had gone below eighty years, the amount would have become more exhorbitant by at least £1,050.

Bexleyheath case:

Mr R Taylor bought a basement apartment in Bexleyheath in May 2006. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical homes in Bexleyheath with a long lease were worth £280,000. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed in 2104. Given that there were 78 years left we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.