Main reasons to commence your Bethnal Green lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bethnal Green property value

As the length of the unexpired term of a Bethnal Green residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in Bethnal Green will qualify for this right; nevertheless a conveyancer will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not finance a property on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Irrespective of whether you are a tenant or a freeholder in Bethnal Green,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bethnal Green valuers.

Bethnal Green Lease Extension Example Cases:

Evan, Bethnal Green, London

Last year Evan, came very close to the eighty-year mark with the lease on his purpose- built apartment in Bethnal Green. In buying his home 19 years previously, the length of the lease was of minimal importance. As luck would have it, he realised he would imminently be paying an inflated amount for a lease extension. Evan extended the lease at the eleventh hour in May. Evan and the freeholder eventually agreed on sum of £5,500 . If the lease had dipped to less than eighty years, the price would have escalated by a minimum £1,150.

Bethnal Green case:

In 2012 we were e-mailed by Mr M Gunderson who, having owned a one bedroom flat in Bethnal Green in July 1995. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar premises in Bethnal Green with 100 year plus lease were valued around £290,000. The mid-range amount of ground rent was £45 collected yearly. The lease ran out in 2098. Considering the 72 years as a residual term we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including professional charges.