Why you should commence your East London lease extension

Main reasons to commence your East London lease extension today:

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

When it comes to domestic leasehold premises in East London, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Leasehold owners in East London with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. When the lease term has below 80 years remaining, under the relevant legislation the freeholder can calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

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

The propensity 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 unexpired lease term required by banks has increased. In the past lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in East London lease extensions?

Lease extensions in East London can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring East London lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

East London Lease Extension Example Cases:

Connor, East London, London,

Connor owned a conversion apartment in East London on the market with a lease of just over 72 years left. Connor informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to invoke his statutory right. Connor procured expert advice and secured satisfactory resolution informally and readily saleable.

East London case:

Mrs Millie Miller purchased a garden apartment in East London in October 2003. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in East London with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 invoiced per annum. The lease expiry date was in 2086. Given that there were 60 years left we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus professional charges.