Why you should start your Bexleyheath lease extension

Main reasons to commence your Bexleyheath lease extension today:

Increase your lease and increase your Bexleyheath property value

The closer a domestic lease in Bexleyheath nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 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 without delay. The majority of flat owners in Bexleyheath will qualify for this right; that being said a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

Bexleyheath property with a lease extension has roughly the same value as a freehold

Leasehold premises in Bexleyheath with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions will not finance a property on a short lease

Lenders are making their criteria more stringent and a meaningful number now expect flats to have at least sixty if not seventy years remaining once the mortgage has expired. As many flats in Bexleyheath were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

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

Retaining our service will provide you better control over the value of your Bexleyheath leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Bexleyheath Lease Extension Case Summaries:

Leo, Bexleyheath, South East London,

Leo was the the leasehold proprietor of a 2 bedroom flat in Bexleyheath on the market with a lease of just over 72 years left. Leo informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert advice and secured an acceptable resolution without going to tribunal and sell the property.

Bexleyheath case:

In 2011 we were approached by Dr Erin López who, having purchased a one bedroom flat in Bexleyheath in February 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable properties in Bexleyheath with an extended lease were worth £218,000. The average amount of ground rent was £45 collected yearly. The lease expired on 27 October 2089. Taking into account 63 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of legals.