Top reasons for Shoreditch lease extension

Main reasons to start your Shoreditch lease extension today:

Increase your lease and increase your Shoreditch property value

Shoreditch leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Shoreditch enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Shoreditch you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

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

Leasehold residencies in Shoreditch with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not issue a mortgage on a short lease

Most banks and building societies require a lengthy amount of time remaining on any leasehold residence before they will consider lending on it. Even if you don't need a mortgage, you should be mindful that it is probable that someone wanting to acquire your property in the future might well do, so in the event that they can't secure a mortgage, then the market price of the property could be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to lend on

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 in-depth market knowledge and the close ties they enjoy with Shoreditch valuers.

Shoreditch Lease Extension Case Studies:

Hollie, Shoreditch, London,

Off the back of unsuccessful negotiations with the freeholder of her basement flat in Shoreditch, Hollie initiated the lease extension process as the eighty year threshold was fast coming. The legal work was concluded in October 2005. The landlord’s charges were kept to an absolute minimum.

Shoreditch case:

Last month we were approach by Dr Liam Parker , who acquired a one bedroom apartment in Shoreditch in March 2010. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparative properties in Shoreditch with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 collected annually. The lease came to a finish on 6 April 2084. Considering the 58 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.