Stop! Your Lease Extension in City Of London Could Be FREE

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Many leaseholders in City Of London 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 City Of London 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 City Of London lease extension

Why you should commence your City Of London lease extension today:

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

On the balance of probabilities if you own a flat in City Of London you actually own a long leasehold interest over your property

City Of London property with a lease extension has roughly the same value as a freehold

Leasehold premises in City Of London with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

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

Mortgage lenders have specific criteria when lending funds secured on leasehold homes. Some will simply refrain from lending at all once the residual lease term goes below a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are seeking to refinance your City Of London home.

Lender Requirement
Accord Mortgages 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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
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;
Halifax Minimum 70 years from the date 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

Get in touch with one of our City Of London lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle City Of London 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 lawyer we work with provide it.

City Of London Lease Extension Example Cases:

Gemma, City Of London, London,

Trailing unsuccessful negotiations with the freeholder of her one bedroom apartment in City Of London, Gemma started the lease extension process just as her lease was approaching the all-important eighty-year mark. The lease extension was finalised in October 2008. The landlord’s fees were negotiated to approximately 450 pounds.

City Of London case:

Ms Courtney Lefebvre took over the lease of a purpose-built apartment in City Of London in April 1996. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar homes in City Of London with an extended lease were worth £290,000. The average amount of ground rent was £45 invoiced annually. The lease expiry date was in 2098. Given that there were 72 years outstanding we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including fees.

City Of London case:

Last month we were contacted by Mr and Mrs. A Gunderson , who was assigned a lease of a one bedroom flat in City Of London in March 2009. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in City Of London with an extended lease were in the region of £233,200. The average amount of ground rent was £60 invoiced annually. The lease terminated in 2087. Considering the 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 plus legals.