Why you should start your East London lease extension

Main reasons to commence your East London lease extension today:

A East London lease depreciates with the years remaining on the lease.

East London leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most East London tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in East London you would be well advised to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a East London leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay

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

Leasehold premises in East London with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lenders may decide not to issue a mortgage on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in East London?

The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.

East London Lease Extension Example Cases:

George, East London, London

Twenty four months ago George, started to get close to the 80-year mark with the lease on his ground floor apartment in East London. Having purchased his home two decades ago, the unexpired term was of minimal relevance. Thankfully, he realised he would soon be paying an escalated premium for a lease extension. George was able to extend his lease just under the wire in August. George and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had descended below eighty years, the figure would have become more costly by a minimum £925.

East London case:

Last Christmas we were contacted by Mrs L Lefebvre , who was assigned a lease of a one bedroom apartment in East London in March 1995. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparable homes in East London with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected yearly. The lease expired on 24 October 2076. Given that there were 50 years outstanding we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 not including expenses.