Top reasons for South Norwood lease extension

Top reasons for lease extension now:

Increase your lease and increase your South Norwood property value

South Norwood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most South Norwood tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in South Norwood you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a South Norwood flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not finance a property with a short lease

Mortgage lenders have specific criteria when loaning funds secured on leasehold property. Some will simply refuse lend at all once an unexpired lease term goes beneath a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than 75 years suitable security. In addition to impacting your ability to sell, it is also relevant if you are wanting to remortgage your South Norwood property.

What makes us experts in South Norwood lease extensions?

The lawyers that we work with undertake South Norwood 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.

South Norwood Lease Extension Example Cases:

Nathan, South Norwood, South London

During the course of the last few months Nathan, started to get close to the 80-year mark with the lease on his ground floor apartment in South Norwood. Having bought his home two decades ago, the length of the lease was of little relevance. As luck would have it, he recognised he needed to take action soon on a lease extension. Nathan arranged for a lease extension just under the wire in April. Nathan and the landlord subsequently agreed on an amount of £5,000 . If the lease had dropped to less than eighty years, the figure would have escalated by at least £850.

South Norwood case:

Mrs M Morel completed a one bedroom flat in South Norwood in April 2007. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Identical flats in South Norwood with 100 year plus lease were valued around £227,800. The average amount of ground rent was £45 billed yearly. The lease expiry date was on 13 May 2091. Given that there were 65 years outstanding we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.