Top reasons for New Cross lease extension

Main reasons to commence your New Cross lease extension today:

A New Cross lease depreciates with the years remaining on the lease.

The nearer a domestic lease in New Cross nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in New Cross will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to lend with a short lease

Banks and Building Societies have specific criteria when loaning funds secured on leasehold property. Some will simply refrain from lending at all once the remaining lease term drops under a certain unexpired lease term. Many Lending institutions will not consider property with a remaining below 75 years suitable security. As well as impacting your ability to sell, it is also relevant if you are intending to refinance your New Cross property.

What makes us experts in New Cross lease extensions?

The lawyers that we work with handle New Cross 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.

New Cross Lease Extension Example Cases:

Madeleine, New Cross, South East London,

Subsequent to protracted discussions with the landlord of her purpose-built apartment in New Cross, Madeleine initiated the lease extension process as the eighty year mark was fast coming. The transaction completed in June 2006. The landlord’s fees were kept to an absolute minimum.

New Cross case:

Ms H Scott moved into a ground floor flat in New Cross in January 2000. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar residencies in New Cross with an extended lease were in the region of £267,600. The mid-range ground rent payable was £65 collected quarterly. The lease concluded in 2093. Given that there were 67 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of legals.