Top reasons for Camberwell lease extension

Top reasons for lease extension now:

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

When it comes to residential leasehold premises in Camberwell, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear 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 number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years left. Anyone in Camberwell with a lease nearing 81 years left should seriously consider extending it as soon as possible. When a lease has below eighty years remaining, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold premises in Camberwell with over one hundred years remaining 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 upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

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

Most banks and building societies insist on a lengthy amount of time left on a leasehold residence before they will consider lending on it. Even if you don't need a mortgage, you should be mindful that it is probable that someone wishing to purchase your property in the future might well do, so in the event that they are not able to get a mortgage, then the financial worth of your property could suffer. Since 2008 many mortgage lenders have increased the required minimum lease length that they are willing to lend on

What makes us experts in Camberwell lease extensions?

The conveyancers that we work with undertake 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 conveyancer we work with provide it.

Camberwell Lease Extension Case Summaries:

Jonathan, Camberwell, South East London,

Jonathan was the the leasehold proprietor of a 2 bedroom flat in Camberwell being marketed with a lease of a few days over 72 years remaining. Jonathan informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.

Camberwell case:

Last Spring we were e-mailed by Mr and Mrs. Y Jones , who bought a ground floor flat in Camberwell in November 2012. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparative residencies in Camberwell with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 collected monthly. The lease ran out on 22 October 2080. Taking into account 54 years remaining we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including costs.