Main reasons to start your Homerton lease extension

Top reasons for lease extension now:

A Homerton leasehold property depreciates with the years remaining on the lease.

Homerton leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Homerton will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s wise to be guided by a conveyancer during the process.

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

Leasehold premises in Homerton with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may not grant a mortgage on a short lease

Banks and building societies are really restricting their approach as regards to properties in Homerton with short leases. For example you may find that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus limiting the amount of potential buyers.

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

Retaining our service will provide you increased control over the value of your Homerton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Homerton Lease Extension Case Summaries:

Finley, Homerton, London,

Finley was the the leasehold owner of a studio flat in Homerton on the market with a lease of a few days over sixty years unexpired. Finley on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to invoke his statutory right. Finley procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.

Homerton case:

In 2014 we were contacted by Ms G François who, having completed a first floor apartment in Homerton in October 1998. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical premises in Homerton with an extended lease were valued about £290,000. The average ground rent payable was £60 collected yearly. The lease came to a finish in 2106. Given that there were 80 years unexpired we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.