Top reasons for City Of London lease extension

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

Increase your lease and increase your City Of London property value

City Of London leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in City Of London will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.

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

Leasehold residencies in City Of London with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not grant a mortgage with a short lease

Almost all banks and building societies will be unwilling to lend on a lease with under 70 years left to run - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult in obtaining a mortgage and this will result in your City Of London property becoming difficult to sell or to obtain finance on.

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

Irrespective of whether you are a tenant or a freeholder in City Of London,the lease extension lawyers 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 City Of London valuers.

City Of London Lease Extension Example Cases:

Isabel, City Of London, London,

Trailing protracted discussions with the landlord of her garden flat in City Of London, Isabel commenced the lease extension process as the eighty year mark was quickly approaching. The legal work was concluded in May 2008. The landlord’s costs were negotiated to less than 450 pounds.

City Of London case:

Last Spring we were phoned by Mr and Mrs. L González , who moved into a studio flat in City Of London in April 2005. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparable premises in City Of London with an extended lease were valued about £280,000. The average ground rent payable was £45 invoiced quarterly. The lease end date was on 22 March 2095. Given that there were 69 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.

City Of London case:

In 2012 we were called by Mr and Mrs. I Clark who, having owned a newly refurbished flat in City Of London in October 2011. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar properties in City Of London with 100 year plus lease were worth £216,000. The average amount of ground rent was £60 invoiced annually. The lease elapsed on 21 November 2084. Having 58 years remaining we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.