Main reasons to start your Clerkenwell lease extension

Why you should start your Clerkenwell lease extension today:

A Clerkenwell lease depreciates with the years remaining on the lease.

The nearer a domestic lease in Clerkenwell gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. Many flat owners in Clerkenwell will qualify for this right; however a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Clerkenwell with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders will not loan monies on a short lease

Lenders do not like short residential leases. You most probably experience difficulties if you wish to sell your flat in Clerkenwell if the remaining lease term is under the criteria set by the majority of mortgage companies. Different lenders have varying criteria but on the whole they are looking for a minimum remaining lease term of seventy years.

Why use us for your lease extension in Clerkenwell?

The conveyancers that we work with handle Clerkenwell 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.

Clerkenwell Lease Extension Case Studies:

Jasper, Clerkenwell, London,

Jasper was the the leasehold proprietor of a high value apartment in Clerkenwell on the market with a lease of fraction over fifty eight years outstanding. Jasper informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.

Clerkenwell case:

Mr and Mrs. U Jackson owned a one bedroom flat in Clerkenwell in July 1995. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Identical flats in Clerkenwell with a long lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease finished in 2082. Given that there were 56 years left we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.