Main reasons to start your Lewisham lease extension

Why you should start your Lewisham lease extension today:

Increase your lease and increase your Lewisham property value

As the the remaining lease term of a Lewisham domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner than later. The majority of flat owners in Lewisham will qualify for this right; nevertheless a conveyancer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold premises in Lewisham with over one hundred years unexpired 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

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

Mortgage companies are making their criteria more stringent and many now want flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Given that a number of flats in Lewisham were built in the fifties, sixties and seventies this means many now need to be extended if they wish to get a mortgage.

What makes us experts in Lewisham lease extensions?

The conveyancers that we work with undertake Lewisham 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 conveyancer we work with provide it.

Lewisham Lease Extension Example Cases:

Harvey, Lewisham, South East London

During the course of the last few months Harvey, came perilously near to the eighty-year threshold with the lease on his leasehold flat in Lewisham. Having purchased his flat twenty years previously, the length of the lease was of minimal bearing. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Harvey arranged for a lease extension at the eleventh hour last June. Harvey and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had dropped lower than 80 years, the premium would have escalated by at least £1,075.

Lewisham case:

Mr and Mrs. I Torres completed a ground floor flat in Lewisham in July 2007. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Lewisham with 100 year plus lease were worth £267,600. The average ground rent payable was £65 collected every twelve months. The lease came to a finish on 8 May 2093. Having 67 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of professional charges.