Why you should start your Nunhead lease extension

Top reasons for lease extension now:

Increase your lease and increase your Nunhead property value

Unfortunately that a Nunhead residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Nunhead property prices.Where your lease has approximately ninety years left, 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 slips below eighty years - otherwise a higher amount will be due. Most leasehold owners in Nunhead will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.

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

Leasehold premises in Nunhead with over one hundred years outstanding on the lease are sometimes regarded as a ‘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 merit it.

Mortgage lenders may not grant a mortgage on a short lease

Most banks have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are deemed to be inadequate security.

What makes us experts in Nunhead lease extensions?

The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.

Nunhead Lease Extension Case Summaries:

Tyler, Nunhead, South East London,

Tyler owned a high value apartment in Nunhead on the market with a lease of fraction over fifty eight years unexpired. Tyler on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Tyler to exercise his statutory right. Tyler procured expert advice and secured satisfactory resolution informally and sell the property.

Nunhead case:

Last Winter we were called by Mrs M Ramírez , who purchased a one bedroom apartment in Nunhead in January 2004. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable flats in Nunhead with 100 year plus lease were valued about £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease came to a finish on 12 October 2097. Taking into account 71 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.