Top reasons for Marylebone lease extension

Main reasons to commence your Marylebone lease extension today:

Increase your lease and increase your Marylebone property value

With a residential leasehold property in Marylebone, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Marylebone with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has under eighty years outstanding, under the relevant statute the freeholder can calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.

Marylebone property with a lease extension is almost the same value as a freehold

Leasehold premises in Marylebone with over one hundred years unexpired 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to grant a mortgage on a short lease

Mortgage lenders have specific criteria when lending monies charged on leasehold homes. Some will simply refrain from lending at all once the remaining lease term goes lower than a specified unexpired lease term. Many Lending institutions will not regard property with a remaining term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant where you are intending to remortgage your Marylebone property.

What makes us experts in Marylebone lease extensions?

The conveyancers that we work with procure Marylebone 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 conveyancing solicitor we work with provide it.

Marylebone Lease Extension Example Cases:

Archie, Marylebone, London

Last Summer Archie, came perilously close to the 80-year mark with the lease on his first floor flat in Marylebone. In buying his flat two decades ago, the lease term was of little significance. by good luck, he realised he needed to take action soon on Extending the lease. Archie was able to extend his lease at the eleventh hour in July. Archie and the freeholder subsequently settled on a premium of £6,000 . If he not met the deadline, the price would have gone up by at least £1,025.

Marylebone case:

Mr and Mrs. O Stewart purchased a garden flat in Marylebone in August 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Marylebone with an extended lease were valued around £216,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed in 2084. Considering the 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.