Main reasons to start your Peckham lease extension

Top reasons for lease extension now:

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

When it comes to residential leasehold premises in Peckham, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years left. Anyone in Peckham with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has under eighty years outstanding, under the current statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.

Peckham property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Lenders may not loan monies with a short lease

Many banks and building societies will be unwilling to lend on a lease with under 70 years left to run - although this varies between mortgage companies. A purchaser will likely find it difficult to obtain a mortgage and this will result in your Peckham property being difficult to sell or to obtain finance on.

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

Engaging our service gives you enhanced control over the value of your Peckham leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Peckham Lease Extension Example Cases:

Seth, Peckham, South East London

Two years ago Seth, started to get near to the 80-year threshold with the lease on his first floor flat in Peckham. Having bought his property two decades ago, the lease term was of little interest. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Seth was able to extend his lease just ahead of time in August. Seth and the landlord who owned the flat above eventually settled on sum of £5,500 . If the lease had gone below eighty years, the amount would have increased by a minimum £900.

Peckham case:

Last Christmas we were contacted by Ms Ellen Morgan , who was assigned a lease of a garden flat in Peckham in January 2007. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Identical properties in Peckham with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 collected every twelve months. The lease ran out on 7 January 2100. Taking into account 74 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.