Why you should commence your Upper Norwood lease extension

Why you should start your Upper Norwood lease extension today:

Increase your lease and increase your Upper Norwood property value

As the length of the unexpired term of a Upper Norwood domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Upper Norwood will qualify for this right; nevertheless a conveyancer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Upper Norwood with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may not finance a property on a short lease

Lending institutions have specific criteria when lending monies charged on leasehold homes. Many will simply refrain from lending at all once the residual lease term goes lower than a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than seventy years as acceptable security. As well as this being important when selling, it is also relevant if you are wanting to remortgage your Upper Norwood property.

What makes us experts in Upper Norwood lease extensions?

Retaining our service will provide you increased control over the value of your Upper Norwood leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Upper Norwood Lease Extension Case Summaries:

Evan, Upper Norwood, South London,

Evan owned a studio apartment in Upper Norwood on the market with a lease of just over 61 years remaining. Evan informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Evan to exercise his statutory right. Evan procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Upper Norwood case:

In 2014 we were phoned by Dr Niamh Watson who, having purchased a basement flat in Upper Norwood in September 2009. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative properties in Upper Norwood with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out in 2083. Considering the 57 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including professional charges.