Top reasons for Mile End lease extension

Main reasons to start your Mile End lease extension today:

Increase your lease and increase your Mile End property value

The market value of a leasehold property in Mile End depends on how long the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed in advance of the eighty year cut off point. Statute enables Mile End qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Mortgage lenders will not finance a property with a short lease

Banks and building societies are really restricting their approach as regards to homes in Mile End with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus reducing your market.

What makes us experts in Mile End lease extensions?

The lawyers that we work with undertake Mile End 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 lawyer we work with provide it.

Mile End Lease Extension Case Summaries:

Jason, Mile End, London

In 2014 Jason, came precariously near to the eighty-year threshold with the lease on his ground floor apartment in Mile End. Having purchased his home 19 years ago, the length of the lease was of minimal significance. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Jason was able to extend his lease just in the nick of time in July. Jason and the freeholder via the managing agents in the end settled on the final figure of £5,500 . If he had missed the deadline, the premium would have gone up by at least £975.

Mile End case:

Dr S López was assigned a lease of a one bedroom apartment in Mile End in November 2005. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable homes in Mile End with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected yearly. The lease concluded on 12 July 2084. Taking into account 58 years remaining we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.