Main reasons to commence your Fitzrovia lease extension

Why you should start your Fitzrovia lease extension today:

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

Fitzrovia leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Fitzrovia enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Fitzrovia you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

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

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to loan monies with a short lease

The propensity since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Fitzrovia lease extensions?

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

Fitzrovia Lease Extension Case Summaries:

Molly, Fitzrovia, London,

Off the back of lengthy correspondence with the landlord of her basement flat in Fitzrovia, Molly started the lease extension process just as the lease was approaching the crucial 80-year mark. The legal work completed in January 2006. The landlord’s charges were kept to an absolute minimum.

Fitzrovia case:

Last Spring we were approach by Mr and Mrs. J Hill , who owned a one bedroom apartment in Fitzrovia in April 2009. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Similar homes in Fitzrovia with an extended lease were valued about £186,000. The average amount of ground rent was £65 collected annually. The lease concluded on 22 September 2084. Having 58 years left we calculated the premium to the landlord for the lease extension to be between £24,700 and £28,600 exclusive of fees.