Top reasons for West Wickham lease extension

Why you should commence your West Wickham lease extension today:

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

The only way is down when it comes to West Wickham lease terms. West Wickham leaseholds that have a residual term lower than 80 years will de-escalate in value even faster, and the cost of extending your lease will rise.

An extended lease has roughly the same value as a freehold

Leasehold properties in West Wickham with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions may decide not to finance a property on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away 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 West Wickham?

Regardless of whether you are a tenant or a landlord in West Wickham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Wickham valuers.

West Wickham Lease Extension Case Summaries:

Oscar, West Wickham, South East London

Last Winter Oscar, started to get near to the eighty-year mark with the lease on his one bedroom apartment in West Wickham. Having bought his property 18 years previously, the unexpired term was of no interest. by good luck, he became aware that he needed to take steps soon on a lease extension. Oscar arranged for a lease extension just under the wire in September. Oscar and the landlord who owned the flat above eventually settled on sum of £6,000 . If the lease had slid to less than eighty years, the figure would have gone up by a minimum £875.

West Wickham case:

In 2013 we were called by Mr and Mrs. O André who, having bought a basement apartment in West Wickham in September 1995. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in West Wickham with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease terminated in 2098. Given that there were 72 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including fees.