Why you should commence your Moorgate lease extension

Main reasons to commence your Moorgate lease extension today:

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

When it comes to long leasehold property in Moorgate, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years left. Leasehold owners in Moorgate with a lease nearing 81 years left should seriously think of extending it sooner than later. Once a lease has under eighty years remaining, under the relevant statute the landlord is entitled to calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.

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

Leasehold properties in Moorgate with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions will not issue a mortgage with a short lease

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 secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.

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:

Freddie, Moorgate, London,

Freddie was the the leasehold proprietor of a 2 bedroom apartment in Moorgate on the market with a lease of fraction over fifty eight years outstanding. Freddie on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and secured an acceptable deal informally and readily saleable.

Moorgate case:

In 2014 we were approached by Mr Milo Norbert who, having completed a one bedroom apartment in Moorgate in March 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Moorgate with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated on 22 May 2104. Given that there were 78 years remaining we approximated the premium to the landlord for the lease extension to be between £7,600 and £8,800 exclusive of professional charges.