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Top reasons for Canning Town lease extension


Why you should commence your Canning Town lease extension today:

Increase your lease and increase your Canning Town property value

Unfortunately that a Canning Town residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Canning Town property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Canning Town will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.

Canning Town property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lenders may not issue a mortgage on a short lease

Mortgage companies are inclined not lend on short residential leases. You are likely to experience problems where you need to sell your flat in Canning Town if the remaining lease term is less than the criteria set by the majority of banks and building societies. Different lenders have different requirements but on the whole they are looking for a minimum remaining lease term of seventy years.

Lender Requirement
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Halifax Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Why use us for your lease extension in Canning Town?

The lawyers that we work with undertake Canning Town 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 conveyancing solicitor we work with provide it.

Canning Town Lease Extension Example Cases:

Ali, Canning Town, London,

Ali was the the leasehold proprietor of a high value apartment in Canning Town being marketed with a lease of a few days over fifty eight years unexpired. Ali on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.

Canning Town case:

Last June we were called by Ms Harriet Adams , who was assigned a lease of a purpose-built flat in Canning Town in September 2010. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable flats in Canning Town with an extended lease were valued about £250,000. The average ground rent payable was £50 billed yearly. The lease terminated on 23 October 2093. Considering the 69 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.

Decision in Newham

An example of a Lease Extension decision for a Canning Town premises is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case was in relation to 1 flat. The unexpired lease term was 69.77 years.