Why you should start your Greenwich lease extension

Why you should commence your Greenwich lease extension today:

A Greenwich lease depreciates with the years remaining on the lease.

Greenwich leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Greenwich tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Greenwich you must investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Greenwich leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay

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

Leasehold premises in Greenwich with in excess of 100 years left 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may not grant a mortgage on a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are regarded as deficient for lending purposes.

What makes us experts in Greenwich lease extensions?

The conveyancing solicitors that we work with handle Greenwich 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 lawyer we work with provide it.

Greenwich Lease Extension Example Cases:

Gemma, Greenwich, South East London,

Subsequent to unsuccessful discussions with the landlord of her ground floor flat in Greenwich, Gemma initiated the lease extension process just as her lease was approaching the crucial 80-year threshold. The lease extension was finalised in September 2009. The freeholder’s fees were kept to an absolute minimum.

Greenwich case:

In 2012 we were e-mailed by Mrs Sophia Parker who, having purchased a newly refurbished apartment in Greenwich in August 1997. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable flats in Greenwich with an extended lease were worth £260,000. The average amount of ground rent was £50 collected monthly. The lease lapsed on 11 August 2097. Taking into account 71 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.