Why you should commence your St John's Wood lease extension

Why you should commence your St John's Wood lease extension today:

Increase your lease and increase your St John's Wood property value

St John's Wood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in St John's Wood enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in St John's Wood you would be well advised to check if your lease has between 70 and ninety years left. There are good reasons why a St John's Wood flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

Leasehold premises in St John's Wood with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders may decide not to lend with a short lease

Banks and building societies are tightening their criteria and many now require flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Considering plenty of flats in St John's Wood were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in St John's Wood lease extensions?

The conveyancers that we work with undertake St John's Wood 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 conveyancer we work with provide it.

St John's Wood Lease Extension Case Summaries:

Lucy, St John's Wood, London,

Off the back of protracted negotiations with the freeholder of her purpose-built flat in St John's Wood, Lucy commenced the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction was finalised in January 2011. The landlord’s charges were kept to an absolute minimum.

St John's Wood case:

In 2012 we were e-mailed by Mrs Jade Simon who, having moved into a basement flat in St John's Wood in October 2003. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparable flats in St John's Wood with an extended lease were worth £256,600. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated in 2077. Having 52 years remaining we approximated the compensation to the landlord to extend the lease to be within £41,800 and £48,400 exclusive of professional charges.