Main reasons to start your Aldermanbury lease extension

Main reasons to start your Aldermanbury lease extension today:

Increase your lease and increase your Aldermanbury property value

When it comes to long leasehold property in Aldermanbury, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years remaining. Leasehold owners in Aldermanbury with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has fewer than eighty years left, under the current statute the landlord can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.

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

Leasehold premises in Aldermanbury with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not lend on a short lease

Many mortgage lenders will be unwilling to grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Aldermanbury property being difficult to dispose of or remortgage.

Why use us for your lease extension in Aldermanbury?

The conveyancing solicitors that we work with undertake Aldermanbury 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.

Aldermanbury Lease Extension Case Studies:

Muhammad, Aldermanbury, London,

Muhammad was the the leasehold proprietor of a high value apartment in Aldermanbury on the market with a lease of a few days over 72 years unexpired. Muhammad on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.

Aldermanbury case:

Ms U François completed a one bedroom apartment in Aldermanbury in January 2003. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable properties in Aldermanbury with an extended lease were valued about £257,800. The average ground rent payable was £65 collected yearly. The lease expired on 25 March 2091. Considering the 65 years unexpired we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.