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Why you should start your Canning Town lease extension

Main reasons to commence your Canning Town lease extension today:

A Canning Town lease depreciates with the years remaining on the lease.

The market value of Canning Town leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is less than 80 years

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

It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to issue a mortgage on a short lease

Mortgage companies are inclined not grant a mortgage on short residential leases. You are likely to encounter problems if you want to sell your flat in Canning Town if the remaining term of your lease is under the criteria set by most lenders. Different lenders have varying criteria but on the whole they are looking for an unexpired term of at least seventy years.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Halifax Minimum 70 years from the date of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Canning Town lease extensions?

Lease extensions in Canning Town can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Canning Town lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Canning Town Lease Extension Example Cases:

Dexter, Canning Town, London,

Dexter was the the leasehold owner of a conversion apartment in Canning Town on the market with a lease of just over 72 years left. Dexter informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.

Canning Town case:

Last Winter we were approach by Mr and Mrs. G Howard , who bought a one bedroom flat in Canning Town in May 1997. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable homes in Canning Town with an extended lease were worth £208,200. The mid-range ground rent payable was £65 collected yearly. The lease expiry date was on 9 February 2085. Taking into account 61 years remaining we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.

Decision in Newham

An example of a Lease Extension decision for a Canning Town property is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case was in relation to 1 flat. The unexpired residue of the current lease was 69.77 years.