Top reasons for Cubitt Town lease extension

Main reasons to start your Cubitt Town lease extension today:

A Cubitt Town lease depreciates with the years remaining on the lease.

Cubitt Town residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.

Cubitt Town property with a lease extension has roughly the same value as a freehold

Leasehold premises in Cubitt Town with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.

Lenders may decide not to loan monies with a short lease

The trend since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Cubitt Town lease extensions?

Regardless of whether you are a tenant or a landlord in Cubitt Town,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cubitt Town valuers.

Cubitt Town Lease Extension Case Summaries:

Connor, Cubitt Town, London,

Connor was the the leasehold owner of a studio flat in Cubitt Town being marketed with a lease of fraction over sixty years unexpired. Connor on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.

Cubitt Town case:

Mr and Mrs. Y Nelson owned a basement flat in Cubitt Town in October 2007. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative homes in Cubitt Town with a long lease were worth £174,200. The mid-range ground rent payable was £55 invoiced yearly. The lease terminated in 2077. Taking into account 51 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of fees.