Why you should commence your Brockley lease extension

Top reasons for lease extension now:

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

There is no doubt about it a leasehold flat or house in Brockley is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Brockley will meet the qualifying criteria; that being said a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold residencies in Brockley with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may not finance a property with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get jittery at around 75 years. This will cause difficulties as and when you need to market or remortgage your property as it will be effectively unmortgageable. You might not have an immediate intention to sell but when you do your purchaser will need to hold off for a couple of years before they can commence the legal procedures for an extension to the lease.

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

Regardless of whether you are a tenant or a landlord in Brockley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brockley valuers.

Brockley Lease Extension Example Cases:

Freddie, Brockley, South East London,

Freddie owned a studio flat in Brockley on the market with a lease of a little over sixty years unexpired. Freddie on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Freddie to exercise his statutory right. Freddie procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.

Brockley case:

Dr Lewis Clark purchased a one bedroom apartment in Brockley in May 2008. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical properties in Brockley with an extended lease were worth £246,800. The average ground rent payable was £60 invoiced annually. The lease elapsed on 18 April 2075. Having 50 years remaining we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including fees.