Main reasons to commence your Brockley lease extension

Main reasons to commence your Brockley lease extension today:

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

The market value of a leasehold property in Brockley depends on how long the lease has left to run. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be finalised well before the eighty year cut off point. Statute enables Brockley qualifying lessees to an additional term of 90 years on top of the remaining term, at a notional rent (zero ground rent). The reason 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 is almost the same value as a freehold

Leasehold premises in Brockley with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions will not lend on a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically banks were content with twenty years plus the term of the loan - typically fifty 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 standard.

What makes us experts in Brockley lease extensions?

Lease extensions in Brockley can be a difficult process. We recommend you procure guidance from a conveyancer 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 Brockley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Brockley Lease Extension Case Studies:

Hunter, Brockley, South East London

During the course of the last few months Hunter, came seriously close to the eighty-year threshold with the lease on his purpose- built apartment in Brockley. Having bought his flat two decades ago, the lease term was of minimal concern. Thankfully, he recognised he needed to take action soon on Extending the lease. Hunter arranged for a lease extension at the eleventh hour in March. Hunter and the landlord in the end agreed on sum of £6,000 . If the lease had dipped lower than 80 years, the premium would have gone up by at least £975.

Brockley case:

Mr and Mrs. K Leroy moved into a garden apartment in Brockley in October 2009. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Comparative residencies in Brockley with an extended lease were in the region of £261,600. The average amount of ground rent was £60 billed every twelve months. The lease expired in 2078. Given that there were 52 years remaining we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 not including expenses.