Main reasons to start your Woolwich lease extension

Main reasons to commence your Woolwich lease extension today:

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

As the length of the unexpired term of a Woolwich domestic lease diminished so does its value and therefore the value of your property. If the residual term has, over one hundred years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Woolwich will qualify for this right; however a conveyancer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

Leasehold properties in Woolwich with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Lending institutions will not grant a mortgage on a short lease

Nearly all mortgage lenders will be unwilling to lend on a lease with less than seventy years unexpired - although this varies between mortgage companies. A buyer will likely encounter difficulties in obtaining a mortgage and this will result in your Woolwich property being difficult to dispose of or refinance.

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

The conveyancing solicitors that we work with undertake Woolwich 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.

Woolwich Lease Extension Example Cases:

Cameron, Woolwich, South East London,

Cameron was the the leasehold proprietor of a conversion flat in Woolwich on the market with a lease of just over 61 years outstanding. Cameron on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Cameron to invoke his statutory right. Cameron procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.

Woolwich case:

In 2012 we were called by Ms Stephanie Davies who, having acquired a recently refurbished apartment in Woolwich in July 1999. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Similar premises in Woolwich with 100 year plus lease were valued about £223,400. The mid-range amount of ground rent was £60 billed per annum. The lease expired in 2085. Considering the 59 years left we calculated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus fees.