Why you should commence your West Dulwich lease extension

Top reasons for lease extension now:

Increase your lease and increase your West Dulwich property value

West Dulwich leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most West Dulwich tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in West Dulwich you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

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

Leasehold properties in West Dulwich with more than one hundred years unexpired 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 purchasing the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies may decide not to finance a property on a short lease

Mortgage lenders have set criteria when lending monies charged on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term slips lower than a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years as acceptable security. In addition to impacting your ability to sell, it is also relevant where you are seeking to remortgage your West Dulwich property.

What makes us experts in West Dulwich lease extensions?

Irrespective of whether you are a tenant or a landlord in West Dulwich,the lease extension experts 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 West Dulwich valuers.

West Dulwich Lease Extension Example Cases:

Archie, West Dulwich, South London,

Archie was the the leasehold proprietor of a high value apartment in West Dulwich being marketed with a lease of just over 59 years unexpired. Archie on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Archie to invoke his statutory right. Archie obtained expert advice and secured satisfactory deal informally and readily saleable.

West Dulwich case:

Mr and Mrs. O González bought a garden apartment in West Dulwich in October 2007. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in West Dulwich with a long lease were worth £173,800. The average ground rent payable was £60 invoiced monthly. The lease expired on 17 September 2081. Considering the 55 years unexpired we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.