Main reasons to commence your Limehouse lease extension

Main reasons to commence your Limehouse lease extension today:

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

There is no doubt about it a leasehold flat or house in Limehouse is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Limehouse will qualify for this right; nevertheless a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies will not lend on a short lease

Lenders are making their criteria more stringent and many now want flats to have at least 60 if not 70 years left at the expiry of the mortgage. As many flats in Limehouse were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Limehouse lease extensions?

The conveyancers that we work with undertake Limehouse lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Limehouse Lease Extension Example Cases:

Luke, Limehouse, London,

Luke owned a high value flat in Limehouse on the market with a lease of fraction over 61 years remaining. Luke informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Luke to exercise his statutory right. Luke obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.

Limehouse case:

Mr and Mrs. C Phillips moved into a recently refurbished flat in Limehouse in July 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Limehouse with a long lease were worth £184,000. The mid-range ground rent payable was £55 invoiced per annum. The lease lapsed on 28 October 2079. Given that there were 53 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.