Top reasons for Erith lease extension

Top reasons for lease extension now:

Increase your lease and increase your Erith property value

The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Erith may extend the lease for a further 90 years in accordance with legislation. Please think carefully before delaying your Erith lease extension. Shelving the costs now simply increases the amount you will ultimately have to pay to extend the lease.

An extended lease is almost the same value as a freehold

Leasehold residencies in Erith with in excess of 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders will not loan monies on a short lease

Banks and Building Societies have set criteria when loaning monies charged on leasehold property. Some will simply refuse lend at all once the residual lease term falls lower than a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired below seventy years as adequate security. In addition to impacting your ability to sell, it is also relevant where you are intending to refinance your Erith property.

Why use us for your lease extension in Erith?

Regardless of whether you are a tenant or a landlord in Erith,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Erith valuers.

Erith Lease Extension Case Studies:

Finn, Erith, South East London

In recent months Finn, started to get near to the 80-year threshold with the lease on his basement flat in Erith. In buying his flat 18 years ago, the unexpired term was of no significance. Thankfully, he recognised he would imminently be paying an inflated amount for Extending the lease. Finn extended the lease just ahead of time in July. Finn and the freeholder in the end settled on a premium of £6,000 . If the lease had fallen below 80 years, the figure would have increased by at least £850.

Erith case:

In 2009 we were contacted by Dr T Bennett who, having purchased a purpose-built apartment in Erith in October 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Erith with a long lease were worth £200,800. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish on 24 September 2086. Taking into account 60 years remaining we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including expenses.