Why you should commence your Shoreditch lease extension

Main reasons to start your Shoreditch lease extension today:

Increase your lease and increase your Shoreditch property value

With a domestic leasehold premises in Shoreditch, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years remaining. Residents in Shoreditch with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has less than eighty years outstanding, under the current legislation the freeholder can calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.

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

It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies will not issue a mortgage on a short lease

Mortgage lenders have specific criteria when lending funds secured on leasehold homes. Many will simply not lend at all once an unexpired lease term drops below a specified unexpired lease term. Many Lending institutions will not consider property with an unexpired below 75 years suitable security. As well as impacting your ability to sell, it is also relevant if you are intending to remortgage your Shoreditch home.

What makes us experts in Shoreditch lease extensions?

Regardless of whether you are a tenant or a freeholder in Shoreditch,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shoreditch valuers.

Shoreditch Lease Extension Case Summaries:

Omar, Shoreditch, London

Last Christmas Omar, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Shoreditch. Having purchased his property 18 years ago, the length of the lease was of minimal bearing. by good luck, he recognised he needed to take steps soon on a lease extension. Omar arranged for a lease extension just under the wire last March. Omar and the landlord who owned the flat above in the end agreed on sum of £6,000 . If the lease had descended below 80 years, the price would have gone up by at least £875.

Shoreditch case:

Mr and Mrs. L Watson took over the lease of a studio apartment in Shoreditch in May 2004. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Identical homes in Shoreditch with a long lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease expired in 2096. Having 70 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.