Main reasons to commence your New Beckenham lease extension

Why you should commence your New Beckenham lease extension today:

Increase your lease and increase your New Beckenham property value

With a long leasehold property in New Beckenham, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider 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 gets disproportionately more expensive notably once there are fewer than 80 years left. Residents in New Beckenham with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has below 80 years outstanding, under the current statute the landlord can calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is payable.

New Beckenham property with a lease extension is almost the same value as a freehold

Leasehold properties in New Beckenham with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders will not loan monies on a short lease

Mortgage lenders have specific criteria when loaning monies secured on leasehold property. Some will simply refuse lend at all once the residual lease term slips lower than a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below seventy years suitable security. As well as this being important when selling, it is also relevant if you are wanting to remortgage your New Beckenham home.

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

Irrespective of whether you are a tenant or a landlord in New Beckenham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with New Beckenham valuers.

New Beckenham Lease Extension Case Studies:

Zoe, New Beckenham, South East London,

Off the back of lengthy negotiations with the landlord of her first floor apartment in New Beckenham, Zoe started the lease extension process just as the lease was coming close to the all-important 80-year mark. The lease extension was concluded in February 2013. The freeholder’s costs were kept to an absolute minimum.

New Beckenham case:

In 2011 we were approached by Mr Elijah Stewart who, having took over the lease of a ground floor apartment in New Beckenham in October 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in New Beckenham with a long lease were worth £198,800. The average ground rent payable was £55 invoiced per annum. The lease finished in 2081. Taking into account 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus costs.