Main reasons to start your Peckham lease extension

Why you should commence your Peckham lease extension today:

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

Unfortunately that a Peckham residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Peckham property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Peckham will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Peckham with in excess of one hundred years unexpired 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may decide not to grant a mortgage on a short lease

Most mortgage lenders require a lengthy amount of time remaining on any leasehold property before they will consider providing a mortgage on it. Even if you don't need a mortgage, you should be aware that it is reasonable to assume that someone intending to purchase your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of your property could be adversely impacted. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are prepared to grant a mortgage on

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

Lease extensions in Peckham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Peckham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Peckham Lease Extension Case Studies:

Jamie, Peckham, South East London

Half a year ago Jamie, came perilously near to the eighty-year mark with the lease on his one bedroom flat in Peckham. In buying his property two decades ago, the unexpired term was of no concern. Fortunately, he noticed he would imminently be paying an escalated premium for a lease extension. Jamie extended the lease at the eleventh hour in August. Jamie and the landlord eventually settled on sum of £6,000 . If he failed to meet the deadline, the price would have escalated by a minimum £1,000.

Peckham case:

In 2009 we were approached by Dr Maisie Walker who, having completed a one bedroom flat in Peckham in May 2002. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Peckham with an extended lease were worth £174,200. The average amount of ground rent was £55 collected quarterly. The lease ended on 25 February 2077. Considering the 51 years remaining we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.