Main reasons to start your Mile End lease extension

Main reasons to commence your Mile End lease extension today:

A Mile End lease depreciates with the years remaining on the lease.

Mile End leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Mile End residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Mile End you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Mile End property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Mile End with over 100 years left 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Banks and Building Societies have set criteria when loaning funds charged on leasehold homes. Many will simply refuse lend at all once the remaining lease term falls lower than a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than 75 years as acceptable security. In addition to impacting your ability to sell, it is also relevant if you are intending to refinance your Mile End property.

Get in touch with one of our Mile End lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Mile End,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mile End valuers.

Mile End Lease Extension Case Studies:

Austin, Mile End, London

Last Summer Austin, came very close to the eighty-year mark with the lease on his purpose- built apartment in Mile End. In buying his property two decades ago, the lease term was of minimal bearing. by good luck, he recognised he needed to take action soon on Extending the lease. Austin was able to extend his lease just ahead of time in May. Austin and the landlord eventually agreed on the final figure of £5,000 . If he had missed the deadline, the amount would have become more exhorbitant by at least £975.

Mile End case:

In 2012 we were contacted by Mr and Mrs. F Stewart who, having moved into a one bedroom flat in Mile End in March 2008. The question was if we could approximate the premium could be to extend the lease by 90 years. Comparative homes in Mile End with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 invoiced annually. The lease ran out in 2096. Taking into account 70 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.