Top reasons for Nunhead lease extension

Main reasons to commence your Nunhead lease extension today:

Increase your lease and increase your Nunhead property value

Unfortunately that a Nunhead residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Nunhead property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. The majority of flat owners in Nunhead will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.

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

Leasehold premises in Nunhead with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to grant a mortgage with a short lease

The propensity since over the last decade has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past lenders would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Nunhead lease extensions?

Using our service gives you better control over the value of your Nunhead leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Nunhead Lease Extension Case Studies:

Arthur, Nunhead, South East London

Last October Arthur, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Nunhead. Having bought his property two decades ago, the unexpired term was of little relevance. by good luck, he noticed he needed to take steps soon on Extending the lease. Arthur was able to extend his lease just under the wire in September. Arthur and the freeholder via the managing agents subsequently agreed on sum of £5,000 . If the lease had dropped lower than eighty years, the amount would have gone up by a minimum £975.

Nunhead case:

Last Summer we were called by Mr Ollie Mason , who owned a one bedroom flat in Nunhead in January 2001. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar properties in Nunhead with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed annually. The lease terminated in 2096. Given that there were 70 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 not including expenses.