Main reasons to commence your Bromley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bromley property value

The re-sale value of a leasehold property in Bromley depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be concluded prior to the eighty year threshold. Statute enables Bromley qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lending institutions will not finance a property on a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to get concerned at around 75 years. This may be problematic as and when you need to dispose of or refinance your flat as it will be practically unmortgageable. You may not have an imminent plan to sell but when you do your purchaser must hold off for a couple of years before being able to exercise the right to a a lease extension.

What makes us experts in Bromley lease extensions?

The conveyancing solicitors that we work with undertake Bromley 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 lawyer we work with provide it.

Bromley Lease Extension Example Cases:

Thomas, Bromley, South East London

Two years ago Thomas, started to get near to the eighty-year threshold with the lease on his studio apartment in Bromley. In buying his flat twenty years previously, the lease term was of little significance. Fortunately, he recognised he needed to take action soon on Extending the lease. Thomas extended the lease just ahead of time last August. Thomas and the freeholder ultimately settled on a premium of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,000.

Bromley case:

Last February we were contacted by Mrs C Martinez , who owned a first floor flat in Bromley in November 1999. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative premises in Bromley with 100 year plus lease were valued about £225,400. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed in 2090. Given that there were 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.