Stop! Your Lease Extension in East London Could Be FREE

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Many leaseholders in East London are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in East London has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to start your East London lease extension

Main reasons to commence your East London lease extension today:

Increase your lease and increase your East London property value

East London residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.

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

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not finance a property with a short lease

The trend since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. Historically mortgage companies were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Lender Requirement
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.

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 conveyancer we work with provide it.

East London Lease Extension Case Studies:

Jayden, East London, London

Last October Jayden, started to get near to the 80-year threshold with the lease on his studio flat in East London. In buying his home two decades ago, the unexpired term was of no relevance. Thankfully, he realised he needed to take action soon on a lease extension. Jayden extended the lease just under the wire in March. Jayden and the landlord subsequently settled on a premium of £5,500 . If he not met the deadline, the premium would have gone up by at least £1,050.

East London case:

Ms C Hill took over the lease of a one bedroom flat in East London in October 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative residencies in East London with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease terminated on 3 April 2101. Given that there were 75 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.

Decision in Hounslow

An example of a Freehold Enfranchisement matter before the tribunal for a East London property is 20 Avonwick Road in July 2013. The Tribunal was dealing with an application under Section 26 of the Leasehold Reform Housing and Urban Development Act 1993 for a determination of the freehold value of the property. It was concluded that the price to be paid was Fifteen Thousand Nine Hundred and Seventy (£15,970) divided as to £8,200 for Flat 20 and £7,770 for Flat 20A This case related to 1 flat. The unexpired term as at the valuation date was 73.26 years.