Main reasons to commence your Shoreditch lease extension

Top reasons for lease extension now:

A Shoreditch leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Shoreditch residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Shoreditch property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. The majority of flat owners in Shoreditch will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.

Lenders may not finance a property with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. Historically banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Shoreditch lease extensions?

The conveyancing solicitors that we work with handle Shoreditch 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 conveyancing solicitor we work with provide it.

Shoreditch Lease Extension Example Cases:

Adam, Shoreditch, London,

Adam was the the leasehold proprietor of a high value flat in Shoreditch on the market with a lease of a little over fifty eight years left. Adam on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Adam to invoke his statutory right. Adam procured expert legal guidance and secured an acceptable resolution informally and readily saleable.

Shoreditch case:

Last September we were approach by Mr and Mrs. G White , who took over the lease of a recently refurbished apartment in Shoreditch in April 2011. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative flats in Shoreditch with an extended lease were valued around £223,400. The mid-range amount of ground rent was £60 collected annually. The lease elapsed in 2085. Given that there were 59 years outstanding we estimated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including fees.