Why you should start your Plumstead lease extension

Top reasons for lease extension now:

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

The closer a domestic lease in Plumstead nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Plumstead will qualify for this right; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

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

It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 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 decide not to finance a property with a short lease

Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly below 75 years as they are considered to be inadequate security.

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

The lawyers that we work with undertake Plumstead 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 conveyancer we work with provide it.

Plumstead Lease Extension Case Summaries:

Riley, Plumstead, South East London

16 months ago Riley, came precariously near to the eighty-year mark with the lease on his leasehold apartment in Plumstead. In buying his property 19 years ago, the unexpired term was of little relevance. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Riley was able to extend his lease just under the wire last May. Riley and the freeholder via the managing agents in the end agreed on sum of £6,000 . If he not met the deadline, the price would have become more exhorbitant by at least £975.

Plumstead case:

Last June we were called by Dr J Green , who bought a studio flat in Plumstead in August 2012. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative premises in Plumstead with 100 year plus lease were in the region of £173,800. The mid-range ground rent payable was £65 billed quarterly. The lease elapsed on 8 February 2081. Considering the 55 years left we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.