Top reasons for Camberwell lease extension

Why you should commence your Camberwell lease extension today:

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

With a long leasehold property in Camberwell, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Leasehold owners in Camberwell with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. When a lease has below eighty years outstanding, under the current Act the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 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 will not loan monies with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This may cause difficulties as and when you wish to market or remortgage your property as it will be effectively unmortgageable. You might not have an imminent intention to sell but when you do your purchaser must hold off for a couple of years before being able to initiate the legal procedures for an extension to the lease.

What makes us experts in Camberwell lease extensions?

The lawyers that we work with procure Camberwell 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 conveyancing solicitor we work with provide it.

Camberwell Lease Extension Example Cases:

Tommy, Camberwell, South East London

Last year Tommy, came dangerously near to the eighty-year mark with the lease on his one bedroom flat in Camberwell. In buying his flat 19 years previously, the lease term was of little concern. Thankfully, he noticed he would soon be paying way over the odds for a lease extension. Tommy extended the lease just under the wire in June. Tommy and the landlord subsequently settled on the final figure of £6,000 . If he had missed the deadline, the amount would have increased by a minimum £875.

Camberwell case:

In 2014 we were approached by Mr and Mrs. G Bell who, having purchased a studio flat in Camberwell in August 1996. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Camberwell with a long lease were worth £198,800. The average amount of ground rent was £55 collected yearly. The lease came to a finish in 2081. Given that there were 55 years left we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.