Top reasons for Elmers End lease extension

Why you should commence your Elmers End lease extension today:

Increase your lease and increase your Elmers End property value

It’s an underpublicised truth that a Elmers End residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Elmers End property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining slips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Elmers End will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.

Elmers End property with a lease extension has roughly the same value as a freehold

Leasehold premises in Elmers End with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not grant a mortgage with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get nervous at around 75 years. This will be problematic when you wish to market or remortgage your flat as it will be practically unmortgageable. You might not have an immediate plan to sell but when you do your purchaser must wait 2 years before they can commence the legal procedures for an extension to the lease.

What makes us experts in Elmers End lease extensions?

Retaining our service gives you better control over the value of your Elmers End leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Elmers End Lease Extension Case Summaries:

Seth, Elmers End, South East London

During the course of the last few months Seth, started to get close to the eighty-year mark with the lease on his two bedroom flat in Elmers End. In buying his property 19 years ago, the lease term was of minimal concern. Fortunately, he realised he would soon be paying way over the odds for Extending the lease. Seth extended the lease just under the wire in March. Seth and the landlord subsequently settled on sum of £5,500 . If the lease had fallen below 80 years, the premium would have gone up by a minimum £1,000.

Elmers End case:

In 2013 we were e-mailed by Mr and Mrs. K Rivera who, having owned a ground floor flat in Elmers End in April 2008. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable flats in Elmers End with a long lease were worth £218,000. The average amount of ground rent was £45 invoiced every twelve months. The lease finished on 8 July 2089. Given that there were 63 years left we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of expenses.