Main reasons to commence your Crystal Palace lease extension

Why you should start your Crystal Palace lease extension today:

A Crystal Palace lease depreciates with the years remaining on the lease.

As the the remaining lease term of a Crystal Palace domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, over one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Crystal Palace will qualify for this right; however a lawyer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Crystal Palace property with a lease extension is almost the same value as a freehold

Leasehold residencies in Crystal Palace with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges merit it.

Lending institutions may not finance a property with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Crystal Palace lease extensions?

Using our service will provide you increased control over the value of your Crystal Palace leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Crystal Palace Lease Extension Example Cases:

Erin, Crystal Palace, South East London,

Trailing unsuccessful negotiations with the freeholder of her basement flat in Crystal Palace, Erin started the lease extension process as the eighty year deadline was fast nearing. The legal work completed in April 2012. The freeholder’s fees were restricted to slightly above 550 GBP.

Crystal Palace case:

Last month we were approach by Dr Dexter King , who owned a one bedroom flat in Crystal Palace in July 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative premises in Crystal Palace with a long lease were in the region of £166,800. The mid-range amount of ground rent was £55 billed annually. The lease ended in 2076. Considering the 50 years as a residual term we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.