Main reasons to start your New Cross lease extension

Top reasons for lease extension now:

Increase your lease and increase your New Cross property value

Unfortunately that a New Cross residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the New Cross property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in New Cross will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.

Lenders may not loan monies on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in New Cross?

The lawyers that we work with undertake 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 conveyancer we work with provide it.

New Cross Lease Extension Example Cases:

Ethan, New Cross, South East London,

Ethan was the the leasehold proprietor of a 2 bedroom flat in New Cross on the market with a lease of a few days over 59 years unexpired. Ethan informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert advice and secured satisfactory deal informally and readily saleable.

New Cross case:

In 2013 we were approached by Dr V Thompson who, having bought a first floor flat in New Cross in November 2012. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable properties in New Cross with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £60 collected per annum. The lease expired in 2082. Taking into account 56 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.