Why you should commence your City Of London lease extension

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

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

City Of London leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher premium will be due. Leasehold owners in City Of London will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to finance a property with a short lease

Almost all banks and building societies require a lengthy amount of time remaining on a leasehold property before they will contemplate lending on it. Even if you don't require a mortgage, you should keep in mind that it is probable that someone intending to acquire your property in the future might well do, so if they are not able to get a mortgage, then the value of the property could suffer. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are prepared to lend on

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

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 conveyancer we work with provide it.

City Of London Lease Extension Example Cases:

Stephanie, City Of London, London,

Trailing protracted correspondence with the freeholder of her purpose-built apartment in City Of London, Stephanie initiated the lease extension process just as her lease was coming close to the crucial eighty-year mark. The transaction was finalised in March 2012. The landlord’s fees were kept to an absolute minimum.

City Of London case:

In 2011 we were approached by Dr Jake Stewart who, having took over the lease of a basement apartment in City Of London in January 2004. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical residencies in City Of London with a long lease were valued about £210,000. The mid-range ground rent payable was £50 invoiced yearly. The lease came to a finish in 2106. Having 80 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.

City Of London case:

In 2010 we were contacted by Mr and Mrs. N Sharif who, having bought a ground floor apartment in City Of London in September 2002. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable flats in City Of London with 100 year plus lease were worth £280,000. The average ground rent payable was £45 billed quarterly. The lease finished on 28 October 2095. Having 69 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.