Top reasons for Erith lease extension

Top reasons for lease extension now:

Increase your lease and increase your Erith property value

For those whose Erith property is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.

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

Leasehold properties in Erith with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may decide not to finance a property with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become nervous at around 75 years. This will cause difficulties when you need to sell or remortgage your property as it will be effectively unmortgageable. You may not have an imminent intention to sell but when you do your buyer will need to hold off for 2 years before being able to start the legal procedures for a lease extension.

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

The conveyancing solicitors that we work with undertake Erith 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 conveyancing solicitor we work with provide it.

Erith Lease Extension Example Cases:

Seth, Erith, South East London,

Seth owned a high value flat in Erith being marketed with a lease of fraction over 61 years outstanding. Seth on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Seth to exercise his statutory right. Seth obtained expert advice and secured satisfactory resolution informally and sell the flat.

Erith case:

Dr B Lee purchased a basement flat in Erith in May 2001. The question was if we could approximate the premium would be to extend the lease by an additional years. Identical flats in Erith with a long lease were valued around £245,000. The average ground rent payable was £45 invoiced quarterly. The lease concluded in 2094. Having 68 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.