Stop! Your Lease Extension in Shoreditch Could Be FREE

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Many leaseholders in Shoreditch are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Shoreditch has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Top reasons for Shoreditch lease extension

Why you should start your Shoreditch lease extension today:

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

The value of Shoreditch leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the unexpired lease term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold premises in Shoreditch with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not finance a property with a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically banks were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.

Why use us for your lease extension in Shoreditch?

Irrespective 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 experience and the close ties they enjoy with Shoreditch valuers.

Shoreditch Lease Extension Example Cases:

Catherine, Shoreditch, London,

Subsequent to protracted negotiations with the landlord of her studio apartment in Shoreditch, Catherine started the lease extension process just as the lease was approaching the all-important eighty-year deadline. The transaction completed in January 2006. The landlord’s fees were negotiated to below 500 GBP.

Shoreditch case:

Last year we were phoned by Mr L Khan , who was assigned a lease of a one bedroom apartment in Shoreditch in February 1995. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative flats in Shoreditch with an extended lease were in the region of £300,000. The average amount of ground rent was £50 billed yearly. The lease expired in 2102. Given that there were 76 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.

Decision in Hackney

An example of a Lease Extension matter before the tribunal for a Shoreditch flat is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case related to 2 flats. The remaining number of years on the lease was 72.39 years.