Why you should commence your East Dulwich lease extension

Top reasons for lease extension now:

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

East Dulwich leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher amount will be payable. Flat owners in East Dulwich will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain situations you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders may not grant a mortgage with a short lease

Lenders are really clamping down as regards to homes in East Dulwich with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction thus reducing the number of prospective purchasers.

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

The conveyancers that we work with undertake East Dulwich 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 conveyancer we work with provide it.

East Dulwich Lease Extension Example Cases:

Lucy, East Dulwich, South East London,

Trailing lengthy negotiations with the landlord of her purpose-built flat in East Dulwich, Lucy started the lease extension process as the 80 year deadline was swiftly nearing. The lease extension completed in March 2007. The landlord’s costs were restricted to under 550 GBP.

East Dulwich case:

Ms A Scott moved into a one bedroom apartment in East Dulwich in February 2005. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Similar premises in East Dulwich with a long lease were valued around £280,000. The average ground rent payable was £55 billed yearly. The lease elapsed on 23 February 2104. Given that there were 78 years remaining we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.