Why you should commence your Nunhead lease extension

Why you should commence your Nunhead lease extension today:

A Nunhead leasehold property depreciates with the years remaining on the lease.

On the balance of probabilities if you own a flat in Nunhead you actually own a long leasehold interest over your property

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

Leasehold premises in Nunhead with over 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may decide not to finance a property with a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are deemed to be unacceptable security.

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

Lease extensions in Nunhead can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor 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 Nunhead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Nunhead Lease Extension Example Cases:

Harvey, Nunhead, South East London

Last year Harvey, came dangerously near to the eighty-year threshold with the lease on his purpose- built flat in Nunhead. In buying his flat two decades ago, the lease term was of little interest. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Harvey extended the lease at the eleventh hour last January. Harvey and the freeholder via the management company subsequently agreed on a premium of £5,000 . If he had missed the deadline, the price would have gone up by at least £875.

Nunhead case:

Dr V Alexander took over the lease of a basement flat in Nunhead in April 1999. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable residencies in Nunhead with a long lease were in the region of £166,400. The average amount of ground rent was £60 collected monthly. The lease came to a finish in 2080. Considering the 54 years remaining we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including fees.