Main reasons to commence your Sydenham lease extension

Top reasons for lease extension now:

A Sydenham lease depreciates with the years remaining on the lease.

It’s a harsh truth that a Sydenham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Sydenham property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term falls under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Sydenham will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

Sydenham property with a lease extension is almost the same value as a freehold

Leasehold properties in Sydenham with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may not finance a property with a short lease

Lenders are making their criteria more stringent and a meaningful number now want flats to have at least 60 if not 70 years left at the expiry of the mortgage. Given that many flats in Sydenham were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

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

Lease extensions in Sydenham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.

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 in-depth market knowledge procuring Sydenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Sydenham Lease Extension Example Cases:

Toby, Sydenham, South East London

During the course of the last few months Toby, came very near to the 80-year threshold with the lease on his basement flat in Sydenham. Having purchased his home 18 years previously, the lease term was of no bearing. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Toby was able to extend his lease just under the wire last May. Toby and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If he not met the deadline, the sum would have escalated by a minimum £900.

Sydenham case:

Dr Samuel Evans bought a purpose-built apartment in Sydenham in May 1998. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Similar properties in Sydenham with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £45 collected quarterly. The lease ended on 15 October 2094. Taking into account 68 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.