Main reasons to commence your Orpington lease extension

Main reasons to commence your Orpington lease extension today:

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

With a residential leasehold property in Orpington, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years left. Anyone in Orpington with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has below eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is payable.

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

Leasehold premises in Orpington with over 100 years left on the lease are sometimes 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 freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies will not grant a mortgage with a short lease

Mortgage companies do not like short residential leases. You most probably experience difficulties where you want to sell your flat in Orpington if the unexpired term of your lease is below the criteria set by the majority of banks and building societies. Different lenders have varying requirements but on the whole theyrequire a minimum remaining lease term of seventy years.

Why use us for your lease extension in Orpington?

The conveyancing solicitors that we work with handle Orpington 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.

Orpington Lease Extension Case Summaries:

Omar, Orpington, South East London,

Omar was the the leasehold owner of a 2 bedroom flat in Orpington being marketed with a lease of fraction over 61 years outstanding. Omar on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Omar to invoke his statutory right. Omar procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.

Orpington case:

Mr and Mrs. Y Thompson took over the lease of a newly refurbished apartment in Orpington in November 2010. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Orpington with a long lease were worth £295,000. The mid-range ground rent payable was £45 collected monthly. The lease terminated on 8 March 2099. Given that there were 74 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.