Top reasons for South Norwood lease extension

Top reasons for lease extension now:

Increase your lease and increase your South Norwood property value

The nearer a domestic lease in South Norwood gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in South Norwood will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to lend on a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are considered to be unacceptable for lending purposes.

Why use us for your lease extension in South Norwood?

Irrespective of whether you are a tenant or a freeholder in South Norwood,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South Norwood valuers.

South Norwood Lease Extension Case Summaries:

Austin, South Norwood, South London,

Austin owned a studio apartment in South Norwood being marketed with a lease of fraction over fifty eight years outstanding. Austin informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Austin to invoke his statutory right. Austin obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

South Norwood case:

In 2012 we were called by Ms G Brooks who, having purchased a newly refurbished apartment in South Norwood in July 2001. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparable premises in South Norwood with a long lease were in the region of £264,000. The mid-range ground rent payable was £60 billed per annum. The lease expiry date was on 17 April 2079. Given that there were 53 years left we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of professional charges.