Top reasons for Camberwell lease extension

Why you should commence your Camberwell lease extension today:

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

There is no doubt about it a leasehold property in Camberwell is a wasting asset as a result of the shortening lease. Where the residual term has, more than 125 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. The majority of flat owners in Camberwell will meet the qualifying criteria; however a lawyer will be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common 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 properties in Camberwell with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

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

Nearly all mortgage lenders require a lengthy amount of time left on any leasehold residence before they will consider it as adequate security. Regardless of whether you need a mortgage, you should keep in mind that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so in the event that they can't secure a mortgage, then the market price of your property could be adversely impacted. Since 2008 many banks and building societies have increased the required minimum lease length that they are prepared to lend on

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

Engaging our service gives you increased control over the value of your Camberwell leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Camberwell Lease Extension Case Summaries:

Luca, Camberwell, South East London

Last Summer Luca, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Camberwell. Having purchased his home two decades ago, the unexpired term was of minimal concern. Thankfully, he realised he needed to take steps soon on Extending the lease. Luca arranged for a lease extension just in the nick of time last September. Luca and the freeholder via the managing agents ultimately settled on the final figure of £5,000 . If the lease had fallen to less than 80 years, the amount would have gone up by at least £1,125.

Camberwell case:

Last month we were approach by Dr David Robinson , who owned a first floor flat in Camberwell in January 2010. The question was if we could approximate the premium would be for a ninety year extension to my lease. Similar premises in Camberwell with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced yearly. The lease came to a finish on 7 August 2096. Having 70 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.