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.

The value of Bethnal Green leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is below than 80 years

An extended lease has roughly the same value as a freehold

Leasehold properties in Bethnal Green with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions will not issue a mortgage with a short lease

The propensity since 2008 has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies would lend on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Bethnal Green lease extensions?

Using our service gives you increased control over the value of your Bethnal Green leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Bethnal Green Lease Extension Case Studies:

Alexandra, Bethnal Green, London,

In the wake of 9 months of unsuccessful discussions with the freeholder of her basement flat in Bethnal Green, Alexandra commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The lease extension completed in September 2008. The landlord’s costs were kept to an absolute minimum.

Bethnal Green case:

Last month we were phoned by Mr Harrison Mitchell , who purchased a ground floor flat in Bethnal Green in August 2005. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Bethnal Green with a long lease were valued about £216,000. The mid-range ground rent payable was £60 collected yearly. The lease concluded on 13 February 2083. Given that there were 58 years unexpired we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.