Top reasons for East London lease extension

Top reasons for lease extension now:

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

Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in East London. Clearly, the term of lease left reduces over time. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in East London have the right to extend the lease for a further 90 years in accordance with statute. Please give due attention before delaying your East London lease extension. Holding off that expense now simply increases the price you will ultimately have to pay to extend your lease

An extended lease is almost the same value as a freehold

Leasehold premises in East London with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may decide not to issue a mortgage with a short lease

Mortgage lenders have specific criteria when lending monies secured on leasehold homes. Some will simply refuse lend at all once the remaining lease term falls under a specified unexpired lease term. Many Lending institutions will not consider property with an unexpired below seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your East London property.

Get in touch with one of our East London lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you better control over the value of your East London leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

East London Lease Extension Example Cases:

Callum, East London, London

In recent months Callum, started to get near to the eighty-year threshold with the lease on his two bedroom flat in East London. In buying his home two decades ago, the lease term was of little relevance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Callum arranged for a lease extension just in the nick of time last July. Callum and the freeholder eventually agreed on an amount of £5,500 . If the lease had dipped to less than eighty years, the figure would have gone up by a minimum £1,150.

East London case:

Dr Owen Reed moved into a recently refurbished flat in East London in March 2010. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable properties in East London with an extended lease were valued around £227,800. The mid-range amount of ground rent was £45 billed per annum. The lease ran out in 2091. Taking into account 65 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.