Why you should start your Soho lease extension

Top reasons for lease extension now:

Increase your lease and increase your Soho property value

It’s a harsh truth that a Soho residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Soho property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. Most flat owners in Soho will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.

An extended lease is almost the same value as a freehold

Leasehold residencies in Soho with more than one hundred 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not grant a mortgage on a short lease

Mortgage companies are making their criteria more stringent and a meaningful number now want flats to have a minimum of sixty if not seventy years left once the mortgage has expired. As many flats in Soho were built in the 1950s, 1960s and 1970s as a result many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Soho lease extensions?

The conveyancing solicitors that we work with procure Soho lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Soho Lease Extension Case Summaries:

Tommy, Soho, London

Two years ago Tommy, started to get close to the 80-year mark with the lease on his garden flat in Soho. In buying his home twenty years ago, the lease term was of minimal concern. by good luck, he recognised he needed to take steps soon on a lease extension. Tommy extended the lease just under the wire last April. Tommy and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he not met the deadline, the premium would have gone up by a minimum £1,050.

Soho case:

Last Autumn we were contacted by Mr Isaac Wright , who was assigned a lease of a studio apartment in Soho in August 1998. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparative flats in Soho with 100 year plus lease were valued about £265,200. The mid-range ground rent payable was £65 billed monthly. The lease concluded in 2092. Taking into account 66 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including professional charges.