Top reasons for Crofton lease extension

Top reasons for lease extension now:

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

Chances are that where you own a flat in Crofton you actually own a long leasehold interest over your property

Crofton property with a lease extension has roughly the same value as a freehold

Leasehold premises in Crofton with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may not lend with a short lease

Mortgage lenders have set criteria when lending funds secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term drops below a certain unexpired lease term. Many Lending institutions will not consider property with a remaining below 75 years suitable security. As well as this being important when selling, it is also relevant where you are wanting to refinance your Crofton home.

What makes us experts in Crofton lease extensions?

Lease extensions in Crofton can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.

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 dealing with Crofton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Crofton Lease Extension Case Studies:

Harry, Crofton, South East London,

Harry was the the leasehold proprietor of a studio apartment in Crofton being sold with a lease of a little over 61 years outstanding. Harry on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harry to exercise his statutory right. Harry obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.

Crofton case:

Last September we were called by Dr Isabelle Williams , who owned a first floor flat in Crofton in February 2000. We are asked if we could approximate the price could be for a ninety year lease extension. Similar flats in Crofton with a long lease were in the region of £285,000. The average ground rent payable was £55 collected every twelve months. The lease lapsed on 9 April 2105. Having 79 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.

Crofton case:

In 2012 we were called by Dr Ryan Gray who, having acquired a one bedroom apartment in Crofton in February 2005. The question was if we could approximate the price could be for a 90 year lease extension. Comparable homes in Crofton with an extended lease were worth £193,400. The average amount of ground rent was £65 collected quarterly. The lease ended on 6 July 2085. Considering the 59 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including legals.