Top reasons for Penge lease extension

Main reasons to commence your Penge lease extension today:

Increase your lease and increase your Penge property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Penge. Clearly, the period of lease left shortens over time. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Penge have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give due deliberation before putting off your Penge lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions may not lend on a short lease

Most mortgage lenders require a lengthy amount of time left on a leasehold residence before they will consider it as adequate security. Regardless of whether you need a mortgage, you should keep in mind that it is likely that someone wishing to buy your property in the future might well do, so if they are unable to secure a mortgage, then the market price of the property will likely suffer. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are prepared to accept

Why use us for your lease extension in Penge?

Regardless of whether you are a tenant or a freeholder in Penge,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Penge valuers.

Penge Lease Extension Case Summaries:

Tommy, Penge, South East London

Last year Tommy, started to get near to the 80-year threshold with the lease on his garden apartment in Penge. Having bought his property two decades ago, the length of the lease was of minimal interest. by good luck, he noticed he needed to take action soon on a lease extension. Tommy extended the lease just ahead of time last June. Tommy and the landlord in the end settled on sum of £5,500 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £850.

Penge case:

Mr Caleb Murphy completed a garden flat in Penge in September 2008. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative flats in Penge with a long lease were worth £300,000. The average amount of ground rent was £50 collected yearly. The lease terminated on 1 October 2102. Taking into account 76 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.