Main reasons to commence your Grove Park lease extension

Top reasons for lease extension now:

A Grove Park leasehold property depreciates with the years remaining on the lease.

As the length of the unexpired term of a Grove Park domestic lease diminished so does its value and therefore the value of your property. Where the lease has, beyond 125 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Most flat owners in Grove Park will qualify for this right; however a conveyancer should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This may be problematic when you wish to dispose of or remortgage your property as it will be effectively unmortgageable. Even though you might not have an immediate plan to sell but when you do your buyer will need to hold off for 2 years before being able to exercise the right to a an extension to the lease.

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

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

Grove Park Lease Extension Case Studies:

Sophia, Grove Park, South East London,

After unsuccessful correspondence with the freeholder of her leasehold flat in Grove Park, Sophia started the lease extension process as the 80 year deadline was swiftly advancing. The transaction was concluded in April 2013. The freeholder’s fees were restricted to slightly above 450 GBP.

Grove Park case:

Mr and Mrs. G Flores was assigned a lease of a one bedroom apartment in Grove Park in October 2012. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable flats in Grove Park with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 billed per annum. The lease ran out in 2095. Considering the 69 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.