Why you should start your Brockley lease extension

Why you should start your Brockley lease extension today:

Increase your lease and increase your Brockley property value

The market value of a leasehold property in Brockley is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be finalised well before the 80 year threshold. Leasehold Reform legislation enables Brockley qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not lend with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This will cause difficulties as and when you come to sell or refinance your property as it will be effectively unmortgageable. Even though you may not have an immediate plan to sell but when you do your buyer will have to wait 2 years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in Brockley?

The lawyers that we work with procure Brockley 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 conveyancer we work with provide it.

Brockley Lease Extension Case Summaries:

Tommy, Brockley, South East London,

Tommy was the the leasehold proprietor of a studio apartment in Brockley being marketed with a lease of fraction over fifty eight years remaining. Tommy on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and secured an acceptable resolution informally and readily saleable.

Brockley case:

In 2012 we were phoned by Mr and Mrs. H Williams who, having took over the lease of a recently refurbished apartment in Brockley in July 1995. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar homes in Brockley with 100 year plus lease were worth £255,000. The average ground rent payable was £50 billed annually. The lease ran out on 15 November 2097. Taking into account 71 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.