Top reasons for Newham lease extension

Main reasons to commence your Newham lease extension today:

A Newham lease depreciates with the years remaining on the lease.

Newham leases on domestic deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Newham will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.

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

Leasehold residencies in Newham with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions may decide not to lend with a short lease

The trend since the credit crunch has been for banks to tighten lending criteria across the board - 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 lenders has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Newham lease extensions?

Regardless of whether you are a tenant or a landlord in Newham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Newham valuers.

Newham Lease Extension Case Summaries:

Stanley, Newham, London

Two years ago Stanley, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Newham. In buying his flat two decades ago, the length of the lease was of minimal interest. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Stanley was able to extend his lease just under the wire in June. Stanley and the landlord who owned the flat above eventually settled on an amount of £5,000 . If the lease had dipped lower than eighty years, the premium would have increased by a minimum £850.

Newham case:

Last Christmas we were called by Mr Jude Lefèvre , who owned a garden flat in Newham in November 2005. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical premises in Newham with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish on 26 April 2104. Having 78 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.