Why you should commence your West Wickham lease extension

Why you should start your West Wickham lease extension today:

A West Wickham leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a West Wickham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the West Wickham property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Most leasehold owners in West Wickham will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.

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

Leasehold residencies in West Wickham with over one hundred years left on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and service charges merit it.

Lenders may not loan monies with a short lease

Almost all mortgage companies will not grant a mortgage on a lease with less than 70 years unexpired - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your West Wickham property becoming difficult to sell or to obtain finance on.

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

The conveyancers that we work with procure West Wickham 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 conveyancing solicitor we work with provide it.

West Wickham Lease Extension Case Studies:

Hannah, West Wickham, South East London,

Off the back of protracted negotiations with the freeholder of her first floor apartment in West Wickham, Hannah started the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction was finalised in May 2015. The freeholder’s costs were restricted to about 600 pounds.

West Wickham case:

Mr and Mrs. Y Bennett purchased a newly refurbished flat in West Wickham in February 2008. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable residencies in West Wickham with 100 year plus lease were worth £230,800. The mid-range amount of ground rent was £60 collected yearly. The lease ran out in 2086. Having 60 years left we calculated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 plus legals.