Lewisham Lease Extension - Free Consultation

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Top reasons for Lewisham lease extension

Top reasons for lease extension now:

A Lewisham lease depreciates with the years remaining on the lease.

The market value of Lewisham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than 80 years

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

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Lenders may not lend on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to get concerned at around 75 years. This may cause difficulties as and when you wish to dispose of or remortgage your property as it will be practically unmortgageable. Even though you may not have an immediate plan to sell but when you do your buyer will need to wait two years before they can exercise the right to a an extension to the lease.

Lender Requirement
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.

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

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

Lewisham Lease Extension Case Summaries:

Freddie, Lewisham, South East London,

Freddie owned a conversion apartment in Lewisham on the market with a lease of a little over fifty eight years left. Freddie informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie procured expert advice and secured satisfactory deal informally and ending up with a market value flat.

Lewisham case:

Last Winter we were called by Mr and Mrs. G Sánchez , who owned a one bedroom apartment in Lewisham in August 2004. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Lewisham with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated in 2095. Having 71 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.

Decision in Lewisham

An example of a Lease Extension case for a Lewisham premises is 73 Walerand Road in August 2012. the result of the findings of the Tribunal led to a premium to be paid for the extended lease in respect of Flat 73 in the sum of £10,040. The premium applicable in respect of Flat 85 was £5,710. This case was in relation to 2 flats. The unexpired term was 72 years.