Why you should start your Lambeth lease extension

Why you should start your Lambeth lease extension today:

Increase your lease and increase your Lambeth property value

Unfortunately that a Lambeth residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Lambeth property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Lambeth will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.

An extended lease has roughly the same value as a freehold

Leasehold properties in Lambeth with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not issue a mortgage on a short lease

Nearly all mortgage companies require a lengthy amount of time left on any leasehold residence before they will consider it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is probable that someone wanting to purchase your property in the future might well do, so in the event that they can't obtain a mortgage, then the value of your property could suffer. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to grant a mortgage on

What makes us experts in Lambeth lease extensions?

The lawyers that we work with handle Lambeth 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 conveyancing solicitor we work with provide it.

Lambeth Lease Extension Example Cases:

Louise, Lambeth, South London,

Following unsuccessful discussions with the freeholder of her ground floor flat in Lambeth, Louise initiated the lease extension process as the eighty year deadline was fast advancing. The legal work was concluded in January 2006. The landlord’s costs were kept to an absolute minimum.

Lambeth case:

In 2012 we were contacted by Mr P Williams who, having bought a one bedroom flat in Lambeth in June 2008. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar homes in Lambeth with 100 year plus lease were in the region of £265,200. The mid-range ground rent payable was £65 collected yearly. The lease ran out in 2092. Having 66 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of costs.