Main reasons to commence your East London lease extension

Main reasons to start your East London lease extension today:

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

East London leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in East London will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.

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

Leasehold properties in East London with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Lending institutions may not lend on a short lease

Banks and building societies are really restricting their approach as regards to properties in East London with short leases. For instance you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your only options would be to find a cash buyer, or try your luck at auction thus reducing the amount of potential buyers.

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

Engaging our service will provide you increased 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 wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

East London Lease Extension Case Studies:

Oscar, East London, London,

Oscar was the the leasehold proprietor of a 2 bedroom apartment in East London on the market with a lease of a little over 72 years unexpired. Oscar on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Oscar to invoke his statutory right. Oscar procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.

East London case:

In 2011 we were called by Ms W Ricardo who, having completed a newly refurbished apartment in East London in July 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar homes in East London with an extended lease were in the region of £176,200. The average amount of ground rent was £65 billed annually. The lease expired in 2082. Considering the 56 years remaining we estimated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including expenses.