Why you should start your Sidcup lease extension

Why you should commence your Sidcup lease extension today:

A Sidcup leasehold property depreciates with the years remaining on the lease.

The value of Sidcup leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than 80 years

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

Leasehold residencies in Sidcup with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Lenders may not loan monies with a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are deemed to be inadequate for lending purposes.

Why use us for your lease extension in Sidcup?

The conveyancers that we work with procure Sidcup 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 conveyancing solicitor we work with provide it.

Sidcup Lease Extension Case Studies:

Gemma, Sidcup, Kent,

Following protracted discussions with the freeholder of her ground floor flat in Sidcup, Gemma started the lease extension process just as her lease was approaching the crucial eighty-year mark. The legal work completed in November 2007. The freeholder’s fees were restricted to slightly above 600 pounds.

Sidcup case:

Mr Henry Alexander took over the lease of a purpose-built apartment in Sidcup in June 2000. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparable flats in Sidcup with an extended lease were worth £237,600. The average amount of ground rent was £45 collected every twelve months. The lease terminated on 26 August 2093. Taking into account 67 years as a residual term we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 not including costs.