Why you should start your Woolwich lease extension

Why you should commence your Woolwich lease extension today:

A Woolwich lease depreciates with the years remaining on the lease.

Woolwich leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. Flat owners in Woolwich will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.

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

Leasehold premises in Woolwich with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies will not finance a property with 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 types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 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 a prerequisite.

What makes us experts in Woolwich lease extensions?

Irrespective of whether you are a tenant or a landlord in Woolwich,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woolwich valuers.

Woolwich Lease Extension Case Summaries:

Max, Woolwich, South East London

In recent months Max, started to get close to the eighty-year threshold with the lease on his first floor flat in Woolwich. In buying his flat two decades ago, the lease term was of no bearing. Luckily, he noticed he needed to take action soon on Extending the lease. Max extended the lease just under the wire in June. Max and the freeholder eventually settled on the final figure of £6,000 . If the lease had slipped lower than eighty years, the figure would have escalated by a minimum £850.

Woolwich case:

In 2012 we were called by Mr and Mrs. J Simon who, having was assigned a lease of a basement flat in Woolwich in March 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparative premises in Woolwich with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out on 16 August 2099. Given that there were 73 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.