Why you should commence your Isle of Dogs lease extension

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

A Isle of Dogs lease depreciates with the years remaining on the lease.

Isle of Dogs leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Isle of Dogs residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Isle of Dogs you would be well advised to see if your lease has between seventy and ninety years left. There are good reasons why a Isle of Dogs flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

Leasehold premises in Isle of Dogs with in excess of one hundred years left 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to finance a property with a short lease

Banks and building societies are really clamping down as regards to homes in Isle of Dogs with short leases. For example you may find that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus reducing the amount of prospective buyers.

Why use us for your lease extension in Isle of Dogs?

Engaging our service will provide you increased control over the value of your Isle of Dogs leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Isle of Dogs Lease Extension Example Cases:

Tommy, Isle of Dogs, London,

Tommy owned a 2 bedroom flat in Isle of Dogs being sold with a lease of a few days over fifty eight years left. Tommy on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and secured an acceptable deal informally and sell the flat.

Isle of Dogs case:

In 2009 we were approached by Mrs Rebecca Mercier who, having took over the lease of a one bedroom flat in Isle of Dogs in May 2001. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Similar residencies in Isle of Dogs with a long lease were valued around £243,000. The mid-range ground rent payable was £65 billed quarterly. The lease elapsed in 2089. Considering the 63 years remaining we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including expenses.