Why you should commence your Shoreditch lease extension

Why you should commence your Shoreditch lease extension today:

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

Shoreditch leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Shoreditch will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s sensible to be guided by a lawyer during the process.

Shoreditch property with a lease extension has roughly the same value as a freehold

Leasehold properties in Shoreditch with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions will not loan monies with a short lease

Most high street banks are tightening their criteria and a meaningful number now want flats to have at least 60 if not 70 years left at the expiry of the mortgage. Given that many flats in Shoreditch were created in the fifties, sixties and seventies as a result many now need to be extended if they if they are to be mortgageable.

What makes us experts in Shoreditch lease extensions?

Irrespective of whether you are a tenant or a landlord in Shoreditch,the lease extension solicitors that we work with will always be happy 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:

Caleb, Shoreditch, London,

Caleb owned a high value flat in Shoreditch being sold with a lease of a few days over 59 years outstanding. Caleb on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.

Shoreditch case:

In 2011 we were called by Ms H Ali who, having acquired a recently refurbished flat in Shoreditch in June 2003. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar homes in Shoreditch with a long lease were in the region of £260,200. The mid-range amount of ground rent was £65 billed per annum. The lease expired on 4 June 2092. Given that there were 66 years left we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 plus costs.