Why you should start your Canary Wharf lease extension

Why you should commence your Canary Wharf lease extension today:

Increase your lease and increase your Canary Wharf property value

Canary Wharf leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Canary Wharf tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Canary Wharf you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

Canary Wharf property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Canary Wharf with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Lending institutions have set criteria when loaning funds secured on leasehold homes. Many will simply not lend at all once an unexpired lease term goes below a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than 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.

What makes us experts in Canary Wharf lease extensions?

The conveyancing solicitors that we work with procure Canary Wharf lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Canary Wharf Lease Extension Example Cases:

Katie, Canary Wharf, London,

In the wake of eight months of protracted discussions with the freeholder of her studio apartment in Canary Wharf, Katie commenced the lease extension process just as her lease was approaching the crucial 80-year mark. The transaction was finalised in June 2010. The freeholder’s charges were restricted to less than 700 GBP.

Canary Wharf case:

Last month we were called by Mr Joshua Alexander , who acquired a one bedroom flat in Canary Wharf in July 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Canary Wharf with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 collected annually. The lease terminated on 17 April 2093. Having 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 plus fees.