Main reasons to commence your Limehouse lease extension

Why you should start your Limehouse lease extension today:

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

It’s a harsh certainty that a Limehouse residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Limehouse property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Most flat owners in Limehouse will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.

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

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to loan monies with a short lease

Nearly all banks and building societies will be unwilling to lend on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult in obtaining a mortgage and this could result in your Limehouse property becoming difficult to dispose of or remortgage.

Why use us for your lease extension in Limehouse?

Regardless of whether you are a tenant or a freeholder in Limehouse,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Limehouse valuers.

Limehouse Lease Extension Example Cases:

Connor, Limehouse, London

During the course of the last few months Connor, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Limehouse. Having purchased his property twenty years ago, the lease term was of no bearing. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. Connor was able to extend his lease at the eleventh hour last March. Connor and the freeholder in the end agreed on the final figure of £5,000 . If the lease had gone lower than 80 years, the figure would have increased by a minimum £875.

Limehouse case:

Dr M Lewis bought a basement apartment in Limehouse in October 1998. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable premises in Limehouse with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 collected annually. The lease elapsed on 28 February 2106. Having 80 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.