Why you should start your Canning Town lease extension

Main reasons to commence your Canning Town lease extension today:

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

With a domestic leasehold property in Canning Town, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years remaining. Anyone in Canning Town with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years remaining, under the current legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to grant a mortgage on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Canning Town?

Using our service will provide you better control over the value of your Canning Town leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Canning Town Lease Extension Case Studies:

Blake, Canning Town, London,

Blake was the the leasehold proprietor of a high value apartment in Canning Town being sold with a lease of just over sixty years remaining. Blake informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Blake to exercise his statutory right. Blake procured expert advice and secured an acceptable deal informally and sell the property.

Canning Town case:

Last July we were called by Mrs Amelia Gray , who took over the lease of a purpose-built apartment in Canning Town in November 2004. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Canning Town with a long lease were in the region of £166,400. The average ground rent payable was £60 invoiced annually. The lease ran out on 25 September 2080. Considering the 54 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of costs.