Why you should commence your Moorgate lease extension

Main reasons to start your Moorgate lease extension today:

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

There is no doubt about it a leasehold flat or house in Moorgate is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Moorgate will qualify for this right; that being said a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to finance a property with a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly below seventy years as they are regarded as deficient for lending purposes.

What makes us experts in Moorgate lease extensions?

The conveyancers that we work with handle Moorgate 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 conveyancer we work with provide it.

Moorgate Lease Extension Case Studies:

Seth, Moorgate, London,

Seth owned a 2 bedroom flat in Moorgate being sold with a lease of just over fifty eight years remaining. Seth on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Seth to exercise his statutory right. Seth procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Moorgate case:

In 2013 we were approached by Dr Naomi Sánchez who, having bought a first floor flat in Moorgate in July 2010. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical premises in Moorgate with an extended lease were worth £223,400. The average amount of ground rent was £60 billed every twelve months. The lease termination date was in 2085. Given that there were 59 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 not including expenses.