Why you should commence your North East London lease extension

Main reasons to start your North East London lease extension today:

Increase your lease and increase your North East London property value

North East London leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying North East London residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in North East London you should see if your lease has between seventy and 90 years left. There are compelling reasons why a North East London leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

Leasehold premises in North East London with over 100 years unexpired on the lease are sometimes 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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

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

Mortgage lenders have set criteria when lending funds secured on leasehold property. Some will simply refrain from lending at all once the residual lease term goes beneath a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired below 75 years suitable security. As well as impacting your ability to sell, it is also relevant if you are seeking to refinance your North East London property.

What makes us experts in North East London lease extensions?

Irrespective of whether you are a tenant or a landlord in North East London,the lease extension solicitors 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 North East London valuers.

North East London Lease Extension Case Summaries:

Aiden, North East London, London

Twenty four months ago Aiden, started to get close to the eighty-year mark with the lease on his purpose- built flat in North East London. In buying his flat twenty years previously, the lease term was of minimal concern. As luck would have it, he became aware that he would soon be paying an inflated amount for a lease extension. Aiden was able to extend his lease just in the nick of time in June. Aiden and the landlord eventually agreed on a premium of £5,500 . If the lease had descended to less than eighty years, the premium would have escalated by at least £1,100.

North East London case:

Ms Amber Patel moved into a recently refurbished flat in North East London in January 2005. The question was if we could estimate the price would be to extend the lease by a further 90 years. Similar residencies in North East London with an extended lease were valued around £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease finished in 2090. Given that there were 64 years unexpired we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 plus legals.

North East London case:

In 2009 we were e-mailed by Dr A Lee who, having completed a one bedroom apartment in North East London in February 2005. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in North East London with an extended lease were in the region of £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease concluded on 25 January 2101. Considering the 75 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.