Why you should start your Charing Cross lease extension

Top reasons for lease extension now:

A Charing Cross lease depreciates with the years remaining on the lease.

Charing Cross residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.

An extended lease has roughly the same value as a freehold

Leasehold premises in Charing Cross with more than one hundred 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.

Lenders may not grant a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become jittery at around 75 years. This will be problematic as and when you need to market or remortgage your flat as it will be practically unmortgageable. You might not have an immediate intention to sell but when you do your buyer must wait two years before being able to exercise the right to a a lease extension.

Get in touch with one of our Charing Cross lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Charing Cross,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Charing Cross valuers.

Charing Cross Lease Extension Case Studies:

Ben, Charing Cross, London,

Ben was the the leasehold proprietor of a conversion flat in Charing Cross on the market with a lease of just over fifty eight years outstanding. Ben on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.

Charing Cross case:

In 2013 we were phoned by Mrs V Hall who, having purchased a studio flat in Charing Cross in August 1998. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable premises in Charing Cross with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced monthly. The lease came to a finish on 12 July 2102. Considering the 76 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.