Top reasons for 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.

Honor Oak 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 the lease becomes more expensive. Most owners of residential leasehold property in Honor Oak enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Honor Oak you would be well advised to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

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

Leasehold premises in Honor Oak with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to lend on a short lease

Most banks and building societies will not lend on a lease with under 70 years left to run - although this varies from lender to lender. A buyer will likely encounter difficulties in obtaining a mortgage and this will result in your Honor Oak property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Honor Oak lease extensions?

The conveyancing solicitors that we work with undertake Honor Oak lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Honor Oak Lease Extension Case Studies:

Katie, Honor Oak, South East London,

In the wake of 9 months of protracted discussions with the freeholder of her ground floor apartment in Honor Oak, Katie initiated the lease extension process just as her lease was nearing the critical eighty-year threshold. The transaction was finalised in March 2013. The freeholder’s fees were kept to an absolute minimum.

Honor Oak case:

Mr Gabriel Bernard bought a first floor flat in Honor Oak in August 2006. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable homes in Honor Oak with a long lease were valued about £295,000. The average amount of ground rent was £50 billed annually. The lease ended in 2101. Considering the 75 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.