Why you should commence your East Dulwich lease extension

Top reasons for lease extension now:

A East Dulwich lease depreciates with the years remaining on the lease.

When it comes to residential leasehold property in East Dulwich, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years remaining. Residents in East Dulwich with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. Once the lease term has below 80 years outstanding, under the current legislation the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.

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

Leasehold premises in East Dulwich with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to issue a mortgage on a short lease

Most banks have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are considered to be deficient for lending purposes.

Why use us for your lease extension in East Dulwich?

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

East Dulwich Lease Extension Case Studies:

Louise, East Dulwich, South East London,

Subsequent to lengthy correspondence with the landlord of her ground floor apartment in East Dulwich, Louise initiated the lease extension process as the 80 year threshold was fast coming. The transaction was finalised in January 2015. The landlord’s costs were restricted to about 500 GBP.

East Dulwich case:

In 2011 we were approached by Mr and Mrs. V Morris who, having purchased a purpose-built apartment in East Dulwich in February 2001. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical properties in East Dulwich with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 invoiced every twelve months. The lease came to a finish in 2099. Given that there were 74 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.