Top reasons for Upper Norwood lease extension

Why you should commence your Upper Norwood lease extension today:

Increase your lease and increase your Upper Norwood property value

As the the remaining lease term of a Upper Norwood residential lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Most flat owners in Upper Norwood will meet the qualifying criteria; nevertheless a lawyer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Upper Norwood with in excess of one hundred 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders will not finance a property on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to get nervous at around 75 years. This will cause difficulties as and when you need to market or refinance your flat as it will be practically unmortgageable. Even though you may have no immediate plan to sell but when you do your buyer must wait two years before they can exercise the right to a a lease extension.

Why use us for your lease extension in Upper Norwood?

Irrespective of whether you are a tenant or a freeholder in Upper Norwood,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Upper Norwood valuers.

Upper Norwood Lease Extension Example Cases:

Finn, Upper Norwood, South London,

Finn was the the leasehold proprietor of a high value flat in Upper Norwood being sold with a lease of a few days over 61 years outstanding. Finn on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and secured satisfactory resolution informally and readily saleable.

Upper Norwood case:

Mr Aarav Nelson took over the lease of a one bedroom apartment in Upper Norwood in August 2012. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable premises in Upper Norwood with an extended lease were valued about £174,200. The average amount of ground rent was £55 billed yearly. The lease termination date was on 2 June 2076. Given that there were 51 years left we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.