Top reasons for Shadwell lease extension

Main reasons to start your Shadwell lease extension today:

Increase your lease and increase your Shadwell property value

Shadwell leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. Flat owners in Shadwell will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Mortgage lenders will not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to get jittery at around 75 years. This will cause difficulties when you need to market or remortgage your flat as it will be effectively unmortgageable. You may have no imminent plan to sell but when you do your purchaser will have to wait 2 years before they can exercise the right to a a lease extension.

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

Irrespective of whether you are a tenant or a landlord in Shadwell,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shadwell valuers.

Shadwell Lease Extension Example Cases:

Riley, Shadwell, Leeds,

Riley owned a studio flat in Shadwell being marketed with a lease of fraction over 61 years remaining. Riley on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to exercise his statutory right. Riley procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.

Shadwell case:

In 2009 we were called by Dr J Rivera who, having moved into a garden apartment in Shadwell in July 1995. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable residencies in Shadwell with 100 year plus lease were worth £275,000. The average ground rent payable was £45 collected every twelve months. The lease finished in 2095. Taking into account 69 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.