Stop! Your Lease Extension in Bow Street Could Be FREE

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Many leaseholders in Bow Street are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Bow Street has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should commence your Bow Street lease extension

Main reasons to start your Bow Street lease extension today:

A Bow Street lease depreciates with the years remaining on the lease.

Bow Street 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 your lease gets more expensive. Most owners of residential leasehold property in Bow Street enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bow Street you really ought to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Bow Street flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay

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

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.

Lending institutions will not grant a mortgage on a short lease

Banks and Building Societies have specific criteria when lending funds charged on leasehold property. Some will simply refrain from lending at all once the remaining lease term drops lower than a certain unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than 75 years suitable security. In addition to impacting your ability to sell, it is also relevant if you are wanting to remortgage your Bow Street property.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaining from the start of the mortgage.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.

Why use us for your lease extension in Bow Street?

The lawyers that we work with handle Bow Street 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.

Bow Street Lease Extension Case Studies:

Rosie, Bow Street, Ceredigion,

Off the back of lengthy negotiations with the freeholder of her one bedroom apartment in Bow Street, Rosie initiated the lease extension process as the eighty year mark was quickly coming. The legal work was finalised in November 2014. The freeholder’s charges were kept to an absolute minimum.

Bow Street case:

Last Spring we were phoned by Dr N Patel , who acquired a studio flat in Bow Street in February 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Bow Street with 100 year plus lease were in the region of £256,600. The average amount of ground rent was £60 collected every twelve months. The lease finished on 12 November 2078. Having 52 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £41,800 and £48,400 plus professional charges.

Bow Street case:

In 2012 we were contacted by Dr V Edwards who, having acquired a purpose-built apartment in Bow Street in May 1995. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative flats in Bow Street with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ran out on 9 November 2089. Having 63 years unexpired we estimated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 not including professional charges.