Why you should start your City Of London lease extension

Top reasons for lease extension now:

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

With a domestic leasehold property in City Of London, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Anyone in City Of London with a lease nearing 81 years left should seriously consider extending it sooner rather than later. Once a lease has under eighty years remaining, under the current legislation the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.

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

It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies may decide not to loan monies on a short lease

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

Retaining our service gives you enhanced control over the value of your City Of London leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

City Of London Lease Extension Case Summaries:

Amber, City Of London, London,

After protracted discussions with the landlord of her one bedroom flat in City Of London, Amber commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The transaction was concluded in May 2012. The landlord’s charges were kept to an absolute minimum.

City Of London case:

In 2014 we were phoned by Mr and Mrs. B Martin who, having bought a purpose-built apartment in City Of London in July 2005. The question was if we could estimate the price could be to extend the lease by ninety years. Comparative residencies in City Of London with a long lease were valued about £208,600. The mid-range amount of ground rent was £60 billed annually. The lease elapsed in 2083. Considering the 57 years unexpired we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus expenses.

City Of London case:

Last Winter we were called by Dr Elizabeth Rogers , who bought a garden flat in City Of London in April 1995. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative premises in City Of London with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 billed quarterly. The lease finished on 10 June 2103. Considering the 77 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.