Why you should commence your Nunhead lease extension

Top reasons for lease extension now:

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

Nunhead leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of 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 Nunhead will usually qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Nunhead with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to lend with a short lease

Most banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will contemplate providing a mortgage on it. Even if you don't require a mortgage, you should bear in mind that it is probable that someone intending to buy your property in the future might well do, so where they are not able to secure a mortgage, then the financial worth of your property will likely be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to accept

Why use us for your lease extension in Nunhead?

The conveyancing solicitors that we work with handle Nunhead 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 lawyer we work with provide it.

Nunhead Lease Extension Example Cases:

Amber, Nunhead, South East London,

After unsuccessful negotiations with the freeholder of her leasehold apartment in Nunhead, Amber initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The legal work was finalised in February 2007. The landlord’s fees were restricted to slightly above 550 GBP.

Nunhead case:

In 2013 we were phoned by Mrs C Morel who, having moved into a studio apartment in Nunhead in March 1996. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical residencies in Nunhead with an extended lease were valued around £246,800. The mid-range ground rent payable was £60 collected per annum. The lease ran out on 11 July 2076. Taking into account 50 years left we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of professional charges.