Main reasons to commence your Downham lease extension

Top reasons for lease extension now:

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

Unfortunately that a Downham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Downham property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Downham will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to lend with a short lease

Many mortgage lenders insist on a lengthy amount of time remaining on any leasehold property before they will consider it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is probable that someone wishing to acquire your property in the future might well do, so where they are not able to obtain a mortgage, then the financial worth of the property will likely be adversely impacted. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to accept

What makes us experts in Downham lease extensions?

The conveyancing solicitors that we work with handle Downham 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 lawyer we work with provide it.

Downham Lease Extension Case Studies:

Michael, Downham, Kent

Last October Michael, started to get close to the 80-year threshold with the lease on his first floor apartment in Downham. In buying his flat twenty years ago, the unexpired term was of no relevance. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Michael extended the lease at the eleventh hour in April. Michael and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,050.

Downham case:

Dr D Brown purchased a first floor apartment in Downham in March 1998. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar flats in Downham with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced every twelve months. The lease expired on 5 March 2098. Having 72 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.