Why you should commence your Otford lease extension

Top reasons for lease extension now:

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

Otford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Otford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Otford you would be well advised to check if your lease has between 70 and 90 years remaining. There are good reasons why a Otford leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Otford with over one hundred years unexpired 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 premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders will not grant a mortgage with a short lease

Lenders will not lend on short residential leases. You are likely to experience difficulties if you want to sell your flat in Otford if the unexpired term of your lease is under the criteria set by the majority of lenders. Different lenders have different requirements but on the whole theyrequire a minimum remaining lease term of 65 years.

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

Retaining our service will provide you better control over the value of your Otford leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Otford Lease Extension Example Cases:

Ethan, Otford, Kent,

Ethan owned a studio flat in Otford on the market with a lease of just over sixty years left. Ethan on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.

Otford case:

Mr and Mrs. L Alexander completed a one bedroom apartment in Otford in August 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar residencies in Otford with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 billed monthly. The lease finished in 2083. Having 57 years outstanding we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.

Otford case:

Ms B White took over the lease of a first floor apartment in Otford in March 2011. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Similar premises in Otford with a long lease were worth £245,000. The mid-range amount of ground rent was £50 collected per annum. The lease came to a finish in 2094. Having 68 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.