Top reasons for Fitzrovia lease extension

Top reasons for lease extension now:

Increase your lease and increase your Fitzrovia property value

Unfortunately that a Fitzrovia residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Fitzrovia property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Fitzrovia will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.

Fitzrovia property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.

Lending institutions will not grant a mortgage on a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Fitzrovia?

Engaging our service gives you enhanced control over the value of your Fitzrovia leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Fitzrovia Lease Extension Case Studies:

Callum, Fitzrovia, London

In 2014 Callum, came very close to the 80-year threshold with the lease on his garden flat in Fitzrovia. In buying his flat 19 years ago, the lease term was of no bearing. Fortunately, he recognised he needed to take action soon on Extending the lease. Callum extended the lease just under the wire in May. Callum and the landlord subsequently settled on an amount of £5,500 . If the lease had slid lower than 80 years, the amount would have increased by a minimum £900.

Fitzrovia case:

Last month we were contacted by Mr and Mrs. V Edwards , who moved into a purpose-built flat in Fitzrovia in March 2005. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable properties in Fitzrovia with 100 year plus lease were in the region of £203,200. The average ground rent payable was £65 invoiced annually. The lease ran out on 12 August 2087. Taking into account 61 years left we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.