Main reasons to commence your Selhurst lease extension

Top reasons for lease extension now:

Increase your lease and increase your Selhurst property value

With a residential leasehold premises in Selhurst, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Leasehold owners in Selhurst with a lease approaching 81 years left should seriously consider extending it sooner than later. Once the lease term has below 80 years remaining, under the current statute the landlord can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Mortgage lenders may not finance a property with a short lease

Lending institutions have set criteria when lending funds secured on leasehold homes. Many will simply refuse lend at all once the remaining lease term drops below a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below 75 years suitable security. As well as this being important when selling, it is also relevant if you are intending to refinance your Selhurst home.

What makes us experts in Selhurst lease extensions?

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

Selhurst Lease Extension Example Cases:

Matthew, Selhurst, South London

Two years ago Matthew, started to get near to the eighty-year mark with the lease on his basement apartment in Selhurst. In buying his home two decades ago, the lease term was of minimal significance. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Matthew was able to extend his lease just under the wire in April. Matthew and the landlord subsequently agreed on an amount of £5,000 . If he had missed the deadline, the price would have increased by a minimum £975.

Selhurst case:

Mrs S Reed acquired a first floor flat in Selhurst in February 1995. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Selhurst with 100 year plus lease were valued around £181,200. The mid-range ground rent payable was £65 billed per annum. The lease expired on 27 February 2082. Having 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of professional charges.