Main reasons to commence your Bickley lease extension

Top reasons for lease extension now:

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

It’s a harsh certainty that a Bickley residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Bickley property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. Most flat owners in Bickley will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.

Lenders will not loan monies on 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 will cause difficulties once you wish to market or refinance your flat as it will be effectively unmortgageable. You might have no imminent intention to sell but when you do your buyer must hold off for two years before they can exercise the right to a an extension to the lease.

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

Lease extensions in Bickley can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.

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 procuring Bickley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Bickley Lease Extension Case Studies:

Theo, Bickley, South East London

During the course of the last few months Theo, came seriously near to the 80-year mark with the lease on his purpose- built apartment in Bickley. Having bought his flat 18 years previously, the lease term was of minimal significance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Theo was able to extend his lease just under the wire last May. Theo and the freeholder subsequently settled on sum of £5,500 . If he had missed the deadline, the figure would have gone up by at least £875.

Bickley case:

In 2013 we were phoned by Mr S Cook who, having moved into a purpose-built flat in Bickley in January 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Bickley with a long lease were worth £255,000. The average ground rent payable was £50 invoiced monthly. The lease came to a finish on 2 September 2096. Considering the 70 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.