Main reasons to start your East Dulwich lease extension

Top reasons for lease extension now:

A East Dulwich lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in East Dulwich depends on how long the lease has left to run. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be concluded well before the 80 year threshold. Leasehold Reform legislation entitles East Dulwich qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

East Dulwich property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may decide not to finance a property with a short lease

Banks and Building Societies have specific criteria when loaning monies charged on leasehold homes. Some will simply not lend at all once the residual lease term drops beneath a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below 75 years suitable security. As well as this being important when selling, it is also relevant where you are wanting to remortgage your East Dulwich property.

What makes us experts in East Dulwich lease extensions?

Irrespective of whether you are a tenant or a landlord in East Dulwich,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with East Dulwich valuers.

East Dulwich Lease Extension Case Summaries:

Aaron, East Dulwich, South East London,

Aaron was the the leasehold owner of a high value flat in East Dulwich being marketed with a lease of just over 61 years left. Aaron on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Aaron to invoke his statutory right. Aaron obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.

East Dulwich case:

Dr S Dupont owned a studio flat in East Dulwich in November 2005. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar homes in East Dulwich with an extended lease were valued about £235,200. The average amount of ground rent was £45 invoiced annually. The lease expired on 28 March 2092. Having 66 years left we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.