Main reasons to commence your Shoreditch lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/shoreditch">Shoreditch</a> lease depreciates with the years remaining on the lease.
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<p> Chances are that where you own a flat in Shoreditch you actually own a long leasehold interest over your property
<h4>An extended lease is almost the same value as a freehold</h4>
<p> It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
<h4>Mortgage lenders will not lend on a short lease</h4> The definition of a short lease varies by mortgage company, yet lending institutions start to become concerned at around 75 years. This may be problematic once you come to market or remortgage your flat as it will be practically unmortgageable. You might not have an imminent desire to sell but when you do your buyer must hold off for a couple of years before being able to exercise the right to a a lease extension.
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<tr><th>Lender</th>
<th> Requirement
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<td>Yorkshire Building Society</td>
<td> 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.
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What makes us experts in Shoreditch lease extensions?
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<p> Retaining our service will provide you enhanced control over the value of your Shoreditch leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell.
The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Shoreditch Lease Extension Case Studies:
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<h5> Amelia, Shoreditch, London,</h5>
<p> Subsequent to protracted discussions with the landlord of her leasehold apartment in Shoreditch, Amelia commenced the lease extension process just as the lease was coming close to the crucial eighty-year mark. The lease extension was finalised in July 2005. The freeholder’s costs were kept to an absolute minimum.
<h5>Shoreditch case:</h5>
<p> Dr M White owned a first floor apartment in Shoreditch in February 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Shoreditch with an extended lease were valued about £285,000. The average ground rent payable was £45 billed annually. The lease lapsed on 15 September 2098. Given that there were 72 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.
<div> <h5>Decision in Hackney</h5>
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An example of a Lease Extension decision for a Shoreditch premises 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 was in relation to 2 flats. The remaining number of years on the lease was 72.39 years.
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