Why you should commence your East London lease extension

Why you should commence your East London lease extension today:

Increase your lease and increase your East London property value

The nearer a residential lease in East London nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 100 years remaining then this decrease may be negligible however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in East London will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

East London property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to issue a mortgage with a short lease

Banks and building societies do not like short residential leases. You are likely to encounter problems where you want to sell your flat in East London if the unexpired lease term is less than the criteria set by the majority of lenders. Different mortgage companies have different criteria but in the main theyrequire an unexpired term of at least seventy years.

Why use us for your lease extension in East London?

The conveyancing solicitors that we work with procure East 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 lawyer we work with provide it.

East London Lease Extension Example Cases:

Archie, East London, London

Last Winter Archie, came perilously close to the 80-year threshold with the lease on his garden flat in East London. In buying his home two decades ago, the lease term was of minimal concern. As luck would have it, he realised he needed to take steps soon on a lease extension. Archie arranged for a lease extension at the eleventh hour in August. Archie and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If the lease had slid lower than eighty years, the premium would have increased by at least £1,150.

East London case:

Mr and Mrs. Y Cook completed a one bedroom flat in East London in September 1995. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in East London with an extended lease were in the region of £225,400. The average amount of ground rent was £45 collected per annum. The lease lapsed in 2090. Taking into account 64 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 plus costs.