Main reasons to start your Honor Oak lease extension

Main reasons to start your Honor Oak lease extension today:

A Honor Oak leasehold property depreciates with the years remaining on the lease.

There is no doubt about it a leasehold flat or house in Honor Oak is a wasting asset as a result of the shortening lease. If the residual term has, more than 100 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner rather than later. Many flat owners in Honor Oak will qualify for this right; that being said a lawyer should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

Honor Oak property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

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

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past banks would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Honor Oak?

Irrespective of whether you are a tenant or a freeholder in Honor Oak,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Honor Oak valuers.

Honor Oak Lease Extension Example Cases:

Jonathan, Honor Oak, South East London,

Jonathan was the the leasehold proprietor of a conversion apartment in Honor Oak on the market with a lease of a few days over 61 years remaining. Jonathan informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert legal guidance and secured satisfactory resolution informally and sell the property.

Honor Oak case:

In 2014 we were phoned by Dr V López who, having bought a studio apartment in Honor Oak in July 1999. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical homes in Honor Oak with a long lease were in the region of £205,000. The average ground rent payable was £50 billed quarterly. The lease lapsed in 2105. Taking into account 79 years unexpired we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.