Main reasons to commence your Isle of Dogs lease extension

Main reasons to start your Isle of Dogs lease extension today:

Increase your lease and increase your Isle of Dogs property value

Isle of Dogs 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 Isle of Dogs enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Isle of Dogs you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Isle of Dogs flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

Leasehold properties in Isle of Dogs with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders will not issue a mortgage with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This may be problematic as and when you come to dispose of or remortgage your flat as it will be practically unmortgageable. Even though you might not have an immediate plan to sell but when you do your buyer will have to wait two years before being able to exercise the right to a a lease extension.

Get in touch with one of our Isle of Dogs lease extension solicitors or enfranchisement solicitors

Lease extensions in Isle of Dogs can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.

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 dealing with Isle of Dogs lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Isle of Dogs Lease Extension Case Studies:

Seth, Isle of Dogs, London

Half a year ago Seth, came perilously close to the 80-year threshold with the lease on his purpose- built apartment in Isle of Dogs. Having bought his flat two decades ago, the length of the lease was of minimal importance. Luckily, he became aware that he needed to take action soon on a lease extension. Seth was able to extend his lease just under the wire in January. Seth and the freeholder subsequently settled on a premium of £6,000 . If the lease had dropped to less than 80 years, the premium would have escalated by at least £925.

Isle of Dogs case:

In 2014 we were phoned by Mr B Michel who, having owned a purpose-built flat in Isle of Dogs in January 2002. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Isle of Dogs with an extended lease were valued about £295,000. The average ground rent payable was £50 collected annually. The lease terminated in 2101. Given that there were 75 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.