Why you should start your Beacontree Heath lease extension

Main reasons to start your Beacontree Heath lease extension today:

A Beacontree Heath leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Beacontree Heath is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded well before the eighty year cut off point. Leasehold Reform legislation enables Beacontree Heath qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

Beacontree Heath property with a lease extension has roughly the same value as a freehold

Leasehold premises in Beacontree Heath with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders will not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to become concerned at around 75 years. This may be problematic when you wish to dispose of or refinance your property as it will be effectively unmortgageable. You might not have an imminent plan to sell but when you do your purchaser must wait a couple of years before they can commence the legal procedures for a lease extension.

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

Regardless of whether you are a tenant or a landlord in Beacontree Heath,the lease extension solicitors 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 Beacontree Heath valuers.

Beacontree Heath Lease Extension Example Cases:

Natasha, Beacontree Heath, London,

Trailing unsuccessful discussions with the landlord of her one bedroom flat in Beacontree Heath, Natasha commenced the lease extension process as the eighty year threshold was rapidly nearing. The lease extension was concluded in September 2007. The freeholder’s charges were negotiated to a tad over 450 pounds.

Beacontree Heath case:

Mrs D André acquired a first floor apartment in Beacontree Heath in August 1995. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative properties in Beacontree Heath with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced monthly. The lease ran out in 2086. Taking into account 60 years left we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus fees.