Canary Wharf Lease Extension - Free Consultation

Before you progress with your lease extension in Canary Wharf
Get a quote from one of our lease extension experts with over 20 years experience.

Let them guide you for FREE on the various options available to you.

It may end up saving you thousands.

Why you should commence your Canary Wharf lease extension


Top reasons for lease extension now:

A Canary Wharf leasehold property depreciates with the years remaining on the lease.

The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Canary Wharf have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Canary Wharf lease extension. Putting off that expense today simply increases the amount you will ultimately have to pay to extend the lease.

An extended lease is almost the same value as a freehold

Leasehold premises in Canary Wharf with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not issue a mortgage with a short lease

Banks and Building Societies have specific criteria when lending monies charged on leasehold property. Many will simply not lend at all once the residual lease term slips beneath a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired below seventy years as adequate security. As well as this being important when selling, it is also relevant if you are intending to refinance your Canary Wharf home.

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Leeds Building Society 85 years remaining from the start of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

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

Irrespective of whether you are a tenant or a landlord in Canary Wharf,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 Canary Wharf valuers.

Canary Wharf Lease Extension Case Summaries:

Hannah, Canary Wharf, London,

Off the back of protracted correspondence with the freeholder of her first floor apartment in Canary Wharf, Hannah commenced the lease extension process as the eighty year mark was swiftly advancing. The transaction was concluded in July 2014. The freeholder’s charges were kept to an absolute minimum.

Canary Wharf case:

Mr and Mrs. E Martínez owned a studio apartment in Canary Wharf in August 2008. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable premises in Canary Wharf with a long lease were valued around £275,000. The average amount of ground rent was £65 billed quarterly. The lease elapsed on 21 September 2093. Considering the 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.

Decision in Southwark

An example of a Freehold Enfranchisement matter before the tribunal for a Canary Wharf premises is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case affected 3 flats. The unexpired residue of the current lease was 101.61 years.