Top reasons for Soho lease extension

Main reasons to commence your Soho lease extension today:

Increase your lease and increase your Soho property value

Soho residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.

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

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lending institutions will not grant a mortgage with a short lease

The propensity since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by banks has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Lender	Requirement
Halifax	Minimum 70 years from the date of the mortgage.
Leeds Building Society	85 years remaining from the start of the mortgage.
Lloyds TSB Scotland	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

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

Lease extensions in Soho can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Soho lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Soho Lease Extension Case Studies:

Elizabeth, Soho, London,

After protracted discussions with the freeholder of her leasehold apartment in Soho, Elizabeth started the lease extension process just as the lease was approaching the critical eighty-year mark. The transaction was concluded in April 2009. The freeholder’s fees were kept to an absolute minimum.

Soho case:

Last Winter we were phoned by Dr J Evans , who bought a ground floor apartment in Soho in November 2012. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparative homes in Soho with an extended lease were worth £206,200. The mid-range ground rent payable was £60 collected annually. The lease came to a finish in 2081. Given that there were 56 years unexpired we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.

Decision in Hounslow

An example of a Freehold Enfranchisement matter before the tribunal for a Soho flat is 20 Avonwick Road in July 2013. The Tribunal was dealing with an application under Section 26 of the Leasehold Reform Housing and Urban Development Act 1993 for a determination of the freehold value of the property. It was concluded that the price to be paid was Fifteen Thousand Nine Hundred and Seventy (£15,970) divided as to £8,200 for Flat 20 and £7,770 for Flat 20A This case affected 1 flat. The number of years remaining on the existing lease(s) was 73.26 years.

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