Main reasons to start 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.

The market value of a leasehold property in Moorgate is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded ahead of the 80 year threshold. Current legislation entitles Moorgate qualifying lessees to an additional term of 90 years on top of the existing term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold properties in Moorgate with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may decide not to finance a property on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. In the past banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

Lease extensions in Moorgate can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Moorgate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Moorgate Lease Extension Example Cases:

Felix, Moorgate, London

Half a year ago Felix, came perilously close to the 80-year mark with the lease on his leasehold flat in Moorgate. In buying his home 19 years ago, the lease term was of little significance. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Felix extended the lease at the eleventh hour last March. Felix and the freeholder in the end settled on an amount of £5,000 . If he not met the deadline, the price would have gone up by at least £975.

Moorgate case:

Mrs Sian Lewis purchased a garden apartment in Moorgate in March 2007. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparable flats in Moorgate with a long lease were valued about £248,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease concluded in 2089. Having 63 years outstanding we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including legals.