Why you should commence your Elmers End lease extension

Why you should commence your Elmers End lease extension today:

Increase your lease and increase your Elmers End property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Elmers End. Inevitably, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying leaseholders in Elmers End have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Please give careful attention before putting off your Elmers End lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease

An extended lease is almost the same value as a freehold

Leasehold properties in Elmers End with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lenders may decide not to grant a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get concerned at around 75 years. This will cause difficulties when you come to market or refinance your flat as it will be practically unmortgageable. Even though you might have no imminent desire to sell but when you do your buyer must hold off for 2 years before they can initiate the legal procedures for a lease extension.

What makes us experts in Elmers End lease extensions?

Regardless of whether you are a tenant or a freeholder in Elmers End,the lease extension solicitors 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 Elmers End valuers.

Elmers End Lease Extension Case Studies:

Isaac, Elmers End, South East London

In recent months Isaac, came dangerously close to the 80-year threshold with the lease on his one bedroom flat in Elmers End. In buying his property 18 years previously, the length of the lease was of little significance. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Isaac extended the lease just under the wire last January. Isaac and the landlord subsequently settled on an amount of £5,500 . If the lease had fallen to less than eighty years, the price would have increased by a minimum £850.

Elmers End case:

In 2013 we were phoned by Mr Jude Morel who, having took over the lease of a ground floor flat in Elmers End in March 2011. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar premises in Elmers End with 100 year plus lease were worth £265,000. The average ground rent payable was £50 billed every twelve months. The lease ran out in 2098. Having 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.