Why you should commence your Soho lease extension

Main reasons to commence your Soho lease extension today:

A Soho lease depreciates with the years remaining on the lease.

When it comes to long leasehold premises in Soho, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years left. Residents in Soho with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once the lease term has less than eighty years remaining, under the relevant statute the landlord is entitled to calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.

Soho property with a lease extension is almost the same value as a freehold

It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not lend with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to get jittery at around 75 years. This will be problematic once you come to market or remortgage your flat as it will be effectively unmortgageable. You may not have an imminent plan to sell but when you do your purchaser must wait 2 years before they can exercise the right to a a lease extension.

What makes us experts in Soho lease extensions?

The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.

Soho Lease Extension Example Cases:

Harry, Soho, London,

Harry was the the leasehold owner of a studio flat in Soho being marketed with a lease of a few days over fifty eight years remaining. Harry on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Harry to invoke his statutory right. Harry obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.

Soho case:

Last Autumn we were e-mailed by Mrs M Gray , who bought a purpose-built apartment in Soho in April 2009. We are asked if we could approximate the price would be for a ninety year lease extension. Identical homes in Soho with a long lease were valued around £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease came to a finish in 2104. Having 78 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.