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Main reasons to commence your Fitzrovia lease extension

Main reasons to start your Fitzrovia lease extension today:

A Fitzrovia leasehold property depreciates with the years remaining on the lease.

The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Fitzrovia can extend the lease for a further 90 years under statute. Do give careful consideration before delaying your Fitzrovia lease extension. Shelving that expense now simply escalates the premium you will ultimately be required to pay to extend the lease.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions may not lend on a short lease

Banks and Building Societies have set criteria when loaning monies charged on leasehold property. Some will simply refuse lend at all once an unexpired lease term goes under a certain unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below 75 years suitable security. As well as this being important when selling, it is also relevant if you are intending to refinance your Fitzrovia property.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
Royal Bank of Scotland Mortgage term plus 30 years.
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.

What makes us experts in Fitzrovia lease extensions?

Lease extensions in Fitzrovia can be a difficult process. We recommend you get 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 a wealth of experience procuring Fitzrovia lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Fitzrovia Lease Extension Example Cases:

Chelsea, Fitzrovia, London,

Off the back of unsuccessful negotiations with the freeholder of her two bedroom apartment in Fitzrovia, Chelsea commenced the lease extension process as the eighty year deadline was swiftly coming. The transaction completed in August 2007. The freeholder’s charges were kept to an absolute minimum.

Fitzrovia case:

Mr M López took over the lease of a purpose-built flat in Fitzrovia in August 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable flats in Fitzrovia with a long lease were in the region of £186,000. The average ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2081. Considering the 58 years left we approximated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 plus costs.

Decision in Hounslow

An example of a Freehold Enfranchisement matter before the tribunal for a Fitzrovia flat 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 number of years remaining on the existing lease(s) was 73.26 years.