Main reasons to commence your Brockley lease extension

Why you should start your Brockley lease extension today:

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

With a residential leasehold premises in Brockley, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years remaining. Residents in Brockley with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. When the lease term has fewer than eighty years remaining, under the relevant statute the landlord can calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to issue a mortgage on a short lease

Lenders do not lend on short residential leases. You most probably experience problems if you wish to sell your flat in Brockley if the unexpired lease term is below the criteria set by most banks and building societies. Different mortgage companies have varying requirements but in the main theyrequire a minimum remaining lease term of seventy years.

Why use us for your lease extension in Brockley?

The conveyancers 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 Example Cases:

Joseph, Brockley, South East London,

Joseph was the the leasehold owner of a conversion apartment in Brockley being marketed with a lease of a few days over 61 years unexpired. Joseph informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.

Brockley case:

In 2014 we were contacted by Mr and Mrs. Y Michel who, having took over the lease of a garden apartment in Brockley in September 2004. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical properties in Brockley with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 billed per annum. The lease lapsed in 2105. Taking into account 79 years left we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.