Main reasons to commence your New Eltham lease extension

Top reasons for lease extension now:

Increase your lease and increase your New Eltham property value

New Eltham leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in New Eltham will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

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

Lending institutions may decide not to issue a mortgage with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies were content with twenty years plus the term of the loan - typically 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 standard.

What makes us experts in New Eltham lease extensions?

The conveyancers that we work with undertake New Eltham 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 Eltham Lease Extension Case Studies:

Ryan, New Eltham, South East London

Last October Ryan, came dangerously near to the 80-year threshold with the lease on his one bedroom flat in New Eltham. In buying his property two decades ago, the lease term was of little concern. by good luck, he noticed he would imminently be paying an inflated amount for a lease extension. Ryan was able to extend his lease just under the wire in January. Ryan and the landlord who owned the flat above eventually settled on sum of £6,000 . If the lease had slipped lower than eighty years, the sum would have increased by at least £950.

New Eltham case:

In 2012 we were called by Mrs K Green who, having completed a newly refurbished apartment in New Eltham in September 1998. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in New Eltham with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 collected yearly. The lease termination date was on 23 November 2093. Having 67 years remaining we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including legals.