Top reasons for Shoreditch lease extension

Top reasons for lease extension now:

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

Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Shoreditch. Clearly, the length of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Shoreditch have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give due deliberation before delaying your Shoreditch lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension

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

It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders will not loan monies with a short lease

Many mortgage companies insist on a lengthy amount of time remaining on a leasehold property before they will consider providing a mortgage on it. Even if you don't need a mortgage, you should be conscious that it is likely that someone wishing to acquire your property in the future might well do, so where they are not able to get a mortgage, then the value of the property could be adversely impacted. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are prepared to grant a mortgage on

What makes us experts in Shoreditch lease extensions?

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

Shoreditch Lease Extension Example Cases:

Dexter, Shoreditch, London

Two years ago Dexter, started to get near to the eighty-year threshold with the lease on his ground floor flat in Shoreditch. In buying his home 19 years previously, the length of the lease was of no bearing. Fortunately, it dawned on him that he would soon be paying way over the odds for a lease extension. Dexter arranged for a lease extension just under the wire in June. Dexter and the freeholder via the management company subsequently settled on the final figure of £5,000 . If the lease had descended below 80 years, the amount would have become more exhorbitant by a minimum £1,000.

Shoreditch case:

Dr Owen Kelly was assigned a lease of a basement apartment in Shoreditch in September 1999. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Comparative homes in Shoreditch with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 billed per annum. The lease ended in 2080. Considering the 54 years remaining we calculated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus costs.