Why you should commence your Moorgate lease extension

Why you should start your Moorgate lease extension today:

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

Unfortunately 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 not fully appreciated in the first few years due to the deflation being disguised by increases in the Moorgate property prices.Once your lease gets to 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 slips lower than eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Moorgate will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.

An extended lease is almost the same value as a freehold

Leasehold premises in Moorgate with in excess of 100 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Mortgage companies are making their criteria more stringent and many now expect flats to have at least sixty if not seventy years left at the expiry of the mortgage. Given that a number of flats in Moorgate were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to get a mortgage.

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

Retaining our service will provide you increased control over the value of your Moorgate leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Moorgate Lease Extension Case Summaries:

Andrew, Moorgate, London

Two years ago Andrew, started to get close to the eighty-year mark with the lease on his leasehold apartment in Moorgate. In buying his home twenty years previously, the unexpired term was of little relevance. Fortunately, he recognised he would imminently be paying an escalated premium for Extending the lease. Andrew was able to extend his lease just under the wire last April. Andrew and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had slipped to less than eighty years, the sum would have become more exhorbitant by at least £1,125.

Moorgate case:

In 2009 we were e-mailed by Dr V André who, having owned a garden apartment in Moorgate in February 2009. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable flats in Moorgate with a long lease were worth £174,200. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2077. Given that there were 51 years left we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.