Top reasons for City Of London lease extension

Top reasons for lease extension now:

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

It’s a harsh certainty that a City Of London residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the City Of London property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term slips below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in City Of London will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.

City Of London property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Why use us for your lease extension in City Of London?

Engaging our service will provide you enhanced 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

City Of London Lease Extension Example Cases:

Louise, City Of London, London,

Off the back of lengthy negotiations with the landlord of her ground floor flat in City Of London, Louise commenced the lease extension process as the eighty year threshold was quickly advancing. The transaction completed in July 2008. The freeholder’s fees were kept to an absolute minimum.

City Of London case:

Last Winter we were phoned by Mr Matthew Turner , who took over the lease of a studio flat in City Of London in October 2011. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in City Of London with a long lease were valued around £257,800. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated in 2091. Having 65 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.

City Of London case:

Last Autumn we were approach by Mr and Mrs. U Robinson , who acquired a one bedroom flat in City Of London in July 2005. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar residencies in City Of London with an extended lease were valued about £191,400. The mid-range amount of ground rent was £55 billed yearly. The lease concluded on 2 February 2080. Taking into account 54 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of legals.