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Main reasons to commence your Canary Wharf lease extension

Top reasons for lease extension now:

Increase your lease and increase your Canary Wharf property value

The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Canary Wharf can extend the lease for an additional 90 years under statute. Please think carefully before delaying your Canary Wharf lease extension. Shelving the costs now simply increases the premium you will eventually be required to pay for a lease extension.

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

Leasehold properties in Canary Wharf with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

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

Nearly all banks and building societies require a lengthy amount of time left on any leasehold property before they will consider it as adequate security. Regardless of whether you need a mortgage, you should keep in mind that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so where they can't get a mortgage, then the value of your property could be adversely impacted. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to accept

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Chelsea Building Society 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.
Leeds Building Society 85 years remaining from the start of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
Yorkshire Building Society 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.

Why use us for your lease extension in Canary Wharf?

Using our service gives you enhanced control over the value of your Canary Wharf leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Canary Wharf Lease Extension Case Summaries:

Jack, Canary Wharf, London

Last October Jack, came dangerously close to the eighty-year mark with the lease on his garden flat in Canary Wharf. In buying his home two decades ago, the length of the lease was of minimal interest. Luckily, he noticed he would soon be paying an inflated amount for Extending the lease. Jack arranged for a lease extension just under the wire last April. Jack and the freeholder ultimately agreed on the final figure of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £875.

Canary Wharf case:

Last year we were called by Mr and Mrs. B Scott , who bought a recently refurbished flat in Canary Wharf in October 2009. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Canary Wharf with an extended lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease ran out on 28 July 2098. Considering the 73 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.

Decision in Southwark

An example of a Freehold Enfranchisement decision 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 related to 3 flats. The unexpired lease term was 101.61 years.