Why you should start your City Of London lease extension

Main reasons to start your City Of London lease extension today:

A City Of London leasehold property depreciates with the years remaining on the lease.

When it comes to residential leasehold property in City Of London, you effectively rent it for a certain period of time. 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 may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Anyone in City Of London with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has less than eighty years outstanding, under the current statute the landlord can calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold properties in City Of London with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may not issue a mortgage on a short lease

Lenders do not grant a mortgage on short residential leases. You most probably experience problems where you need to sell your flat in City Of London if the remaining term of your lease is less than the criteria set by most banks and building societies. Different lenders have different criteria but on the whole they are looking for an unexpired term of at least 65 years.

What makes us experts in City Of London lease extensions?

Retaining our service gives you better control over the value of your City Of London leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

City Of London Lease Extension Example Cases:

Jordan, City Of London, London,

After lengthy discussions with the landlord of her two bedroom apartment in City Of London, Jordan initiated the lease extension process as the 80 year deadline was quickly coming. The lease extension was finalised in April 2005. The landlord’s costs were negotiated to about 600 GBP.

City Of London case:

Last Christmas we were called by Dr Lucas Taylor , who acquired a purpose-built apartment in City Of London in July 2005. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical residencies in City Of London with 100 year plus lease were valued around £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease end date was in 2087. Having 61 years unexpired we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 plus costs.

City Of London case:

Ms W Parker bought a one bedroom apartment in City Of London in April 2000. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in City Of London with 100 year plus lease were in the region of £171,800. The average amount of ground rent was £55 invoiced quarterly. The lease elapsed in 2076. Having 50 years remaining we approximated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus costs.