Main reasons to start your Limehouse lease extension

Top reasons for lease extension now:

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

On the balance of probabilities if you own a flat in Limehouse you actually own a long leasehold interest over your property

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

Leasehold properties in Limehouse with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 estate charges warrant it.

Banks and Building Societies may not finance a property on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. Historically banks would lend on a lease with 25 years plus the term of the loan - routinely 50 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 Limehouse?

The lawyers that we work with handle 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:

Tyler, Limehouse, London

Half a year ago Tyler, started to get close to the eighty-year mark with the lease on his purpose- built flat in Limehouse. Having bought his flat two decades ago, the unexpired term was of little concern. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Tyler arranged for a lease extension just under the wire in March. Tyler and the freeholder via the management company in the end agreed on an amount of £5,500 . If the lease had slid to less than 80 years, the premium would have become more costly by a minimum £1,025.

Limehouse case:

In 2013 we were called by Mrs Catherine Mitchell who, having completed a basement apartment in Limehouse in November 2002. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical flats in Limehouse with an extended lease were worth £257,800. The average amount of ground rent was £65 invoiced quarterly. The lease end date was in 2091. Having 65 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus legals.