Why you should commence your Moorgate lease extension

Main reasons to start your Moorgate lease extension today:

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

It’s an underpublicised truth that a Moorgate residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Moorgate property prices.Where your lease has approximately 90 years left, you need to 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 falls lower than 80 years - otherwise a higher premium will be due. Most leasehold owners in Moorgate will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not loan monies on a short lease

Lending institutions have specific criteria when loaning monies secured on leasehold property. Some will simply refuse lend at all once an unexpired lease term goes lower than a certain unexpired lease term. Many Mortgage lenders will not regard property with a remaining below 75 years suitable security. In addition to impacting your ability to sell, it is also relevant if you are seeking to refinance your Moorgate property.

Get in touch with one of our Moorgate lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Moorgate,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Moorgate valuers.

Moorgate Lease Extension Case Studies:

Ibrahim, Moorgate, London

In 2014 Ibrahim, came very near to the 80-year threshold with the lease on his purpose- built apartment in Moorgate. Having purchased his property 19 years previously, the length of the lease was of minimal interest. Thankfully, he noticed he would soon be paying an inflated amount for a lease extension. Ibrahim arranged for a lease extension just ahead of time last March. Ibrahim and the landlord who owned the flat above in the end agreed on sum of £5,000 . If the lease had slid lower than 80 years, the figure would have become more exhorbitant by at least £1,075.

Moorgate case:

Last Christmas we were phoned by Dr Sophia Khan , who purchased a recently refurbished apartment in Moorgate in November 2010. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Moorgate with a long lease were valued around £198,800. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed on 26 February 2081. Having 55 years unexpired we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus costs.