Main reasons to commence your Streatham lease extension

Why you should start your Streatham lease extension today:

Increase your lease and increase your Streatham property value

The re-sale value of a leasehold property in Streatham depends on how long the lease has remaining. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded well before the 80 year mark. Current legislation entitles Streatham qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold premises in Streatham with over 100 years unexpired 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Lending institutions may not grant a mortgage on a short lease

Lending institutions have specific criteria when loaning funds secured on leasehold property. Many will simply refrain from lending at all once an unexpired lease term goes beneath a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than seventy years as adequate security. In addition to this being important when selling, it is also relevant if you are wanting to refinance your Streatham home.

What makes us experts in Streatham lease extensions?

Lease extensions in Streatham can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Streatham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Streatham Lease Extension Case Summaries:

Sam, Streatham, South London,

Sam owned a conversion flat in Streatham on the market with a lease of a little over sixty years unexpired. Sam informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Sam to invoke his statutory right. Sam obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.

Streatham case:

In 2009 we were e-mailed by Mr U Hill who, having was assigned a lease of a ground floor apartment in Streatham in September 2001. The question was if we could approximate the price would be for a 90 year lease extension. Identical flats in Streatham with an extended lease were valued around £218,000. The average ground rent payable was £45 billed every twelve months. The lease ran out on 12 May 2089. Considering the 63 years left we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of fees.