Main reasons to start your Shadwell lease extension

Top reasons for lease extension now:

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

When it comes to residential leasehold premises in Shadwell, you are actually purchasing an entitlement to live in a property for a set 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 think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years left. Anyone in Shadwell with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has fewer than eighty years remaining, under the relevant legislation the landlord can calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

Shadwell property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to finance a property with a short lease

Many banks and building societies insist on a lengthy amount of time left on a leasehold property before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is likely that someone intending to buy your property in the future might well do, so if they are not able to secure a mortgage, then the value of your property could suffer. Since 2008 many mortgage lenders have increased the required minimum lease length that they are willing to accept

What makes us experts in Shadwell lease extensions?

The lawyers that we work with undertake Shadwell 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 lawyer we work with provide it.

Shadwell Lease Extension Example Cases:

Alfie, Shadwell, Leeds,

Alfie owned a studio apartment in Shadwell being marketed with a lease of just over 61 years left. Alfie 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 freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Alfie to exercise his statutory right. Alfie procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.

Shadwell case:

In 2014 we were called by Mr and Mrs. D King who, having completed a basement apartment in Shadwell in November 2005. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative homes in Shadwell with an extended lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease terminated in 2087. Having 61 years unexpired we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 not including legals.