Top reasons for Sydenham lease extension

Why you should start your Sydenham lease extension today:

Increase your lease and increase your Sydenham property value

The market value of a leasehold property in Sydenham is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years remaining so that formalities can be finalised prior to the eighty year mark. Leasehold Reform legislation entitles Sydenham qualifying lessees to an additional term of 90 years on top of the unexpired term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the sum 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

It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Mortgage lenders may not loan monies with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get jittery at around 75 years. This will be problematic as and when you wish to market or remortgage your flat as it will be practically unmortgageable. Even though you might have no imminent intention to sell but when you do your purchaser must wait 2 years before being able to exercise the right to a a lease extension.

Why use us for your lease extension in Sydenham?

The conveyancing solicitors that we work with procure Sydenham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Sydenham Lease Extension Case Summaries:

Finn, Sydenham, South East London,

Finn owned a high value flat in Sydenham being marketed with a lease of a few days over sixty years outstanding. Finn on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Finn to invoke his statutory right. Finn procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

Sydenham case:

Dr C Lee completed a studio apartment in Sydenham in October 2012. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable flats in Sydenham with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected yearly. The lease expired on 3 May 2102. Taking into account 76 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.