Top reasons for Coulsdon lease extension

Main reasons to commence your Coulsdon lease extension today:

Increase your lease and increase your Coulsdon property value

For those whose Coulsdon flat is held on a long lease, the message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.

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

Leasehold residencies in Coulsdon with more than one hundred years outstanding 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders may decide not to finance a property with a short lease

Lending institutions have set criteria when loaning funds secured on leasehold property. Some 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 consider property with a remaining below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are seeking to remortgage your Coulsdon home.

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

Regardless of whether you are a tenant or a landlord in Coulsdon,the lease extension experts 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 Coulsdon valuers.

Coulsdon Lease Extension Case Studies:

Felix, Coulsdon, South London

Last October Felix, came precariously close to the eighty-year threshold with the lease on his garden flat in Coulsdon. Having bought his home two decades ago, the length of the lease was of minimal significance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Felix arranged for a lease extension just ahead of time in January. Felix and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If he not met the deadline, the sum would have escalated by at least £850.

Coulsdon case:

In 2011 we were approached by Mr and Mrs. H Phillips who, having owned a one bedroom flat in Coulsdon in May 2001. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar properties in Coulsdon with a long lease were in the region of £261,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease concluded in 2078. Taking into account 52 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 not including legals.