Top reasons for East London lease extension

Main reasons to commence your East London lease extension today:

Increase your lease and increase your East London property value

With a long leasehold property in East London, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years left. Anyone in East London with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has below 80 years left, under the current Act the landlord can calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is payable.

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

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.

Lending institutions will not issue a mortgage with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This may cause difficulties once you come to market or remortgage your property as it will be practically unmortgageable. Even though you may not have an imminent intention to sell but when you do your purchaser must hold off for two years before being able to start the legal procedures for a lease extension.

What makes us experts in East London lease extensions?

Regardless of whether you are a tenant or a freeholder in East London,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East London valuers.

East London Lease Extension Case Studies:

Tommy, East London, London,

Tommy was the the leasehold proprietor of a conversion apartment in East London on the market with a lease of a few days over sixty years remaining. Tommy informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.

East London case:

In 2009 we were called by Mr and Mrs. M Lee who, having was assigned a lease of a one bedroom apartment in East London in August 2009. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparative premises in East London with 100 year plus lease were worth £245,000. The average amount of ground rent was £50 invoiced monthly. The lease expiry date was on 14 November 2094. Given that there were 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.