Why you should start your Lewisham lease extension

Main reasons to start your Lewisham lease extension today:

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

Lewisham leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease drops under 80 years - otherwise a higher amount will be due. Leasehold owners in Lewisham will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Lewisham with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders may not lend with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Lewisham lease extensions?

The conveyancing solicitors that we work with handle 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 Case Summaries:

Arthur, Lewisham, South East London

During the course of the last few months Arthur, came precariously near to the eighty-year threshold with the lease on his first floor flat in Lewisham. In buying his home two decades ago, the unexpired term was of little relevance. by good luck, it dawned on him that he would imminently be paying way over the odds for a lease extension. Arthur was able to extend his lease just under the wire in April. Arthur and the freeholder ultimately settled on an amount of £6,000 . If he failed to meet the deadline, the sum would have increased by a minimum £900.

Lewisham case:

Dr Dexter Ramírez bought a purpose-built apartment in Lewisham in August 2000. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical flats in Lewisham with a long lease were worth £285,000. The average ground rent payable was £45 billed per annum. The lease lapsed on 22 August 2097. Given that there were 71 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.