Main reasons to start your Elmers End lease extension

Top reasons for lease extension now:

A Elmers End lease depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Elmers End residential lease is a deteriorating asset. As the lease term diminishes 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 Elmers End property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of flat owners in Elmers End will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.

Elmers End property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to lend on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Elmers End lease extensions?

Engaging our service gives you better control over the value of your Elmers End leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers 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 Studies:

Kyle, Elmers End, South East London

Half a year ago Kyle, came perilously near to the eighty-year threshold with the lease on his first floor flat in Elmers End. In buying his home twenty years previously, the unexpired term was of minimal concern. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Kyle extended the lease at the eleventh hour in June. Kyle and the landlord in the end settled on a premium of £5,500 . If the lease had descended below eighty years, the price would have become more exhorbitant by at least £1,000.

Elmers End case:

In 2009 we were phoned by Mrs Ellen Murphy who, having purchased a first floor apartment in Elmers End in November 2012. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative properties in Elmers End with an extended lease were valued about £290,000. The average amount of ground rent was £60 collected monthly. The lease lapsed in 2106. Considering the 80 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.