Top reasons for Mile End lease extension

Top reasons for lease extension now:

Increase your lease and increase your Mile End property value

The value of Mile End leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than 80 years

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

Leasehold properties in Mile End with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not finance a property on a short lease

The propensity since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by lenders has increased. In the past banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Mile End lease extensions?

The conveyancers 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 conveyancing solicitor we work with provide it.

Mile End Lease Extension Case Studies:

Rachel, Mile End, London,

In the wake of eight months of lengthy correspondence with the landlord of her purpose-built apartment in Mile End, Rachel initiated the lease extension process as the 80 year mark was quickly coming. The transaction completed in March 2011. The freeholder’s fees were negotiated to approximately 650 pounds.

Mile End case:

Mr and Mrs. Y Wright was assigned a lease of a studio flat in Mile End in September 1998. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Identical homes in Mile End with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced yearly. The lease ran out on 18 April 2100. Having 74 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.