Top reasons for Honor Oak lease extension

Top reasons for lease extension now:

Increase your lease and increase your Honor Oak property value

Honor Oak leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Honor Oak tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Honor Oak you should see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may not lend with a short lease

Nearly all mortgage lenders insist on a lengthy amount of time left on a leasehold property before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should be conscious that it is probable that someone wishing to purchase your property in the future might well do, so where they are not able to obtain a mortgage, then the value of the property will likely be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to lend on

What makes us experts in Honor Oak lease extensions?

Lease extensions in Honor Oak can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Honor Oak lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Honor Oak Lease Extension Case Studies:

Leon, Honor Oak, South East London,

Leon was the the leasehold owner of a studio flat in Honor Oak being marketed with a lease of a little over 72 years unexpired. Leon on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert advice and secured an acceptable deal informally and readily saleable.

Honor Oak case:

Ms Jessica Wilson acquired a one bedroom apartment in Honor Oak in November 2004. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar homes in Honor Oak with 100 year plus lease were valued around £267,600. The mid-range ground rent payable was £65 billed quarterly. The lease ran out on 26 February 2093. Taking into account 67 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of costs.