Main reasons to start your Sidcup lease extension

Main reasons to commence your Sidcup lease extension today:

Increase your lease and increase your Sidcup property value

When it comes to domestic leasehold property in Sidcup, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years left. Anyone in Sidcup with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has less than eighty years outstanding, under the current Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

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

It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions will not lend with a short lease

Lending institutions have set criteria when loaning monies charged on leasehold property. Some will simply refuse lend at all once the remaining lease term drops lower than a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than seventy years as acceptable security. In addition to this being important when selling, it is also relevant if you are wanting to refinance your Sidcup property.

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

The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.

Sidcup Lease Extension Example Cases:

Kai, Sidcup, Kent,

Kai owned a high value apartment in Sidcup on the market with a lease of fraction over sixty years remaining. Kai informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.

Sidcup case:

Last Autumn we were called by Dr I González , who was assigned a lease of a newly refurbished apartment in Sidcup in March 2010. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Sidcup with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease lapsed on 20 August 2105. Given that there were 79 years outstanding we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.