Why you should commence your Upper Norwood lease extension

Main reasons to commence your Upper Norwood lease extension today:

A Upper Norwood lease depreciates with the years remaining on the lease.

Upper Norwood leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher premium will be due. Leasehold owners in Upper Norwood will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.

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

Leasehold residencies in Upper Norwood with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not grant a mortgage with a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are deemed to be deficient for lending purposes.

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

Engaging our service gives you enhanced control over the value of your Upper Norwood leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Upper Norwood Lease Extension Case Studies:

Teddy, Upper Norwood, South London,

Teddy owned a high value flat in Upper Norwood being marketed with a lease of a few days over 72 years remaining. Teddy on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.

Upper Norwood case:

Ms S Roberts acquired a purpose-built apartment in Upper Norwood in May 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Upper Norwood with an extended lease were valued about £240,600. The average amount of ground rent was £60 collected quarterly. The lease ran out in 2088. Considering the 62 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus expenses.