Main reasons to start 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 decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying New Eltham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in New Eltham you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in New Eltham with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lenders will not grant a mortgage with a short lease

Lenders will not grant a mortgage on short residential leases. You most probably experience problems if you wish to sell your flat in New Eltham if the unexpired term of your lease is below the criteria set by most lenders. Different lenders have different requirements but in the main they are looking for a minimum remaining lease term of seventy years.

What makes us experts in New Eltham lease extensions?

Lease extensions in New Eltham can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with New Eltham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

New Eltham Lease Extension Case Studies:

Riley, New Eltham, South East London

Two years ago Riley, started to get close to the 80-year mark with the lease on his first floor apartment in New Eltham. In buying his flat twenty years ago, the length of the lease was of no importance. Luckily, he recognised he would soon be paying an escalated premium for Extending the lease. Riley was able to extend his lease at the eleventh hour last June. Riley and the freeholder ultimately agreed on an amount of £6,000 . If the lease had slipped to less than 80 years, the price would have escalated by at least £1,125.

New Eltham case:

Mr J Harris was assigned a lease of a ground floor apartment in New Eltham in January 1999. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical properties in New Eltham with a long lease were valued around £285,000. The mid-range ground rent payable was £45 collected monthly. The lease terminated on 22 February 2097. Having 71 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.