Top reasons for St Mary Cray lease extension

Why you should start your St Mary Cray lease extension today:

A St Mary Cray lease depreciates with the years remaining on the lease.

When it comes to residential leasehold premises in St Mary Cray, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years left. Leasehold owners in St Mary Cray with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. When a lease has fewer than eighty years outstanding, under the current legislation the freeholder is entitled to calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold properties in St Mary Cray with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders will not lend with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This may cause difficulties as and when you wish to market or remortgage your flat as it will be effectively unmortgageable. Even though you may have no immediate desire to sell but when you do your purchaser must wait two years before being able to commence the legal procedures for an extension to the lease.

Why use us for your lease extension in St Mary Cray?

Retaining our service gives you better control over the value of your St Mary Cray leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

St Mary Cray Lease Extension Case Studies:

Morgan, St Mary Cray, South East London,

Off the back of unsuccessful discussions with the landlord of her studio apartment in St Mary Cray, Morgan initiated the lease extension process just as her lease was approaching the critical 80-year threshold. The lease extension was concluded in September 2012. The landlord’s charges were kept to an absolute minimum.

St Mary Cray case:

In 2010 we were phoned by Mr and Mrs. M Turner who, having was assigned a lease of a purpose-built apartment in St Mary Cray in August 2000. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical residencies in St Mary Cray with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 collected monthly. The lease expired in 2101. Given that there were 75 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.