Top reasons for Bethnal Green lease extension

Top reasons for lease extension now:

A Bethnal Green leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Bethnal Green residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Bethnal Green property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. The majority of flat owners in Bethnal Green will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.

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

Leasehold properties in Bethnal Green with over one hundred 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 situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Lenders may decide not to lend on a short lease

Nearly all banks and building societies will be unwilling to lend on a lease with less than seventy years left to run - although this varies between mortgage companies. A purchaser will likely find it difficult to obtain a mortgage and this will result in your Bethnal Green property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Bethnal Green lease extensions?

The lawyers that we work with undertake Bethnal Green 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.

Bethnal Green Lease Extension Example Cases:

Katherine, Bethnal Green, London,

After protracted discussions with the landlord of her studio flat in Bethnal Green, Katherine initiated the lease extension process as the eighty year mark was swiftly nearing. The transaction was concluded in June 2015. The landlord’s costs were negotiated to about six hundred GBP.

Bethnal Green case:

Dr Louise Reed owned a first floor flat in Bethnal Green in September 2001. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar homes in Bethnal Green with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ended on 27 March 2078. Taking into account 52 years left we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including professional charges.