Main reasons to start your Honor Oak lease extension

Why you should commence your Honor Oak lease extension today:

Increase your lease and increase your Honor Oak property value

With a long leasehold premises in Honor Oak, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Leasehold owners in Honor Oak with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has fewer than 80 years outstanding, under the current Act the landlord can calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold residencies in Honor Oak with more than 100 years remaining on the lease are sometimes 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 buying the freehold unless savings on ground rent and service charges justify it.

Lenders may not loan monies with a short lease

The propensity since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Honor Oak?

Using our service will provide you enhanced control over the value of your Honor Oak leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Honor Oak Lease Extension Case Summaries:

Freya, Honor Oak, South East London,

After lengthy correspondence with the landlord of her first floor apartment in Honor Oak, Freya commenced the lease extension process as the 80 year deadline was quickly coming. The legal work was finalised in July 2010. The landlord’s charges were kept to an absolute minimum.

Honor Oak case:

In 2009 we were called by Dr N Anderson who, having acquired a one bedroom flat in Honor Oak in October 2007. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar premises in Honor Oak with 100 year plus lease were worth £184,000. The average ground rent payable was £55 collected per annum. The lease lapsed in 2078. Given that there were 53 years left we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.