Why you should commence your Upper Norwood lease extension

Top reasons for lease extension now:

Increase your lease and increase your Upper Norwood property value

When it comes to residential leasehold premises in Upper Norwood, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Leasehold owners in Upper Norwood with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the relevant legislation the landlord is entitled to calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is due.

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

It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lending institutions may not grant a mortgage on a short lease

The trend since over the last decade has been for banks to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Upper Norwood?

Irrespective of whether you are a tenant or a landlord in Upper Norwood,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 Upper Norwood valuers.

Upper Norwood Lease Extension Case Studies:

Tommy, Upper Norwood, South London

Last year Tommy, started to get near to the 80-year mark with the lease on his leasehold apartment in Upper Norwood. In buying his home 19 years previously, the length of the lease was of minimal significance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Tommy arranged for a lease extension just in the nick of time last April. Tommy and the freeholder eventually agreed on a premium of £5,500 . If the lease had fallen to less than 80 years, the amount would have increased by at least £875.

Upper Norwood case:

Mr and Mrs. J Adams acquired a studio apartment in Upper Norwood in June 2007. We are asked if we could approximate the price could be for a ninety year lease extension. Identical premises in Upper Norwood with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish on 1 March 2092. Taking into account 67 years remaining we estimated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 not including legals.