Main reasons to start your Shoreditch lease extension

Top reasons for lease extension now:

Increase your lease and increase your Shoreditch property value

The nearer a domestic lease in Shoreditch nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner than later. Many flat owners in Shoreditch will meet the qualifying criteria; however a conveyancer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold premises in Shoreditch with over 100 years outstanding 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders will not loan monies on a short lease

Almost all mortgage lenders require a lengthy amount of time left on any leasehold residence before they will contemplate lending on it. Regardless of whether you require a mortgage, you should be mindful that it is likely that someone wanting to buy your property in the future might well do, so in the event that they can't get a mortgage, then the value of your property could suffer. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are willing to accept

What makes us experts in Shoreditch lease extensions?

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

Megan, Shoreditch, London,

Trailing unsuccessful correspondence with the freeholder of her garden flat in Shoreditch, Megan initiated the lease extension process as the eighty year threshold was quickly coming. The transaction completed in June 2007. The freeholder’s costs were restricted to under 600 pounds.

Shoreditch case:

Mr and Mrs. V Vincent acquired a studio flat in Shoreditch in January 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Shoreditch with an extended lease were in the region of £295,000. The average ground rent payable was £45 collected quarterly. The lease terminated in 2100. Given that there were 74 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.