Why you should start your New Cross lease extension

Why you should start your New Cross lease extension today:

Increase your lease and increase your New Cross property value

The market value of a leasehold property in New Cross is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised in advance of the eighty year threshold. Statute enables New Cross qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.

Lenders will not loan monies on a short lease

Almost all mortgage lenders insist on a lengthy amount of time remaining on any leasehold residence before they will contemplate providing a mortgage on it. Even if you don't require a mortgage, you should be conscious that it is likely that someone wishing to buy your property in the future might well do, so in the event that they are unable to get a mortgage, then the market price of the property could suffer. Since 2008 many banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

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

The conveyancers 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 lawyer we work with provide it.

New Cross Lease Extension Case Summaries:

Leah, New Cross, South East London,

Off the back of lengthy correspondence with the landlord of her one bedroom apartment in New Cross, Leah commenced the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work completed in January 2005. The landlord’s fees were negotiated to slightly above 550 pounds.

New Cross case:

Dr B Moreau took over the lease of a one bedroom flat in New Cross in January 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Identical properties in New Cross with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease expiry date was on 28 October 2105. Taking into account 79 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.