Top reasons for Streatham lease extension

Why you should start your Streatham lease extension today:

A Streatham leasehold property depreciates with the years remaining on the lease.

When it comes to domestic leasehold premises in Streatham, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years left. Anyone in Streatham with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has below eighty years outstanding, under the relevant legislation the landlord can calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not issue a mortgage with a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on any leasehold residence before they will contemplate lending on it. Even if you don't need a mortgage, you should keep in mind that it is likely that someone intending to acquire your property in the future might well do, so where they can't secure a mortgage, then the value of your property will likely suffer. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are willing to lend on

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

Irrespective of whether you are a tenant or a landlord in Streatham,the lease extension lawyers 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 Streatham valuers.

Streatham Lease Extension Example Cases:

Daniel, Streatham, South London,

Daniel was the the leasehold proprietor of a 2 bedroom flat in Streatham being sold with a lease of just over 59 years unexpired. Daniel on an informal basis approached his landlord being a well known Bristol-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 a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Streatham case:

Last Summer we were contacted by Dr Amy Petit , who purchased a first floor flat in Streatham in May 2006. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical properties in Streatham with a long lease were valued about £254,200. The average ground rent payable was £60 billed per annum. The lease ran out in 2077. Given that there were 51 years left we estimated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of legals.