Top reasons for Camberwell lease extension

Top reasons for lease extension now:

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

With a long leasehold property in Camberwell, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than 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 80 years left. Leasehold owners in Camberwell with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has below 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to lend with a short lease

Banks and building societies are inclined not lend on short residential leases. You most probably experience difficulties if you wish to sell your flat in Camberwell if the unexpired lease term is less than the criteria set by most lenders. Different lenders have varying criteria but in the main they are looking for an unexpired term of at least seventy years.

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

Lease extensions in Camberwell can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Camberwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Camberwell Lease Extension Example Cases:

Dylan, Camberwell, South East London

During the course of the last few months Dylan, came seriously close to the 80-year mark with the lease on his ground floor apartment in Camberwell. Having bought his home 18 years previously, the lease term was of minimal concern. As luck would have it, he noticed he needed to take action soon on a lease extension. Dylan arranged for a lease extension at the eleventh hour in June. Dylan and the freeholder subsequently settled on a premium of £5,500 . If he not met the deadline, the figure would have increased by a minimum £1,100.

Camberwell case:

In 2011 we were e-mailed by Mr R Sánchez who, having bought a basement apartment in Camberwell in September 1997. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar flats in Camberwell with an extended lease were valued around £295,000. The mid-range ground rent payable was £45 invoiced annually. The lease concluded on 17 January 2100. Taking into account 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.