Why you should commence your St Anns lease extension

Main reasons to commence your St Anns lease extension today:

A St Anns leasehold property depreciates with the years remaining on the lease.

St Anns 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. It is the case that most St Anns tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in St Anns you really ought to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold residencies in St Anns with over 100 years remaining on the lease are often regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Lenders will not finance a property with a short lease

Nearly all mortgage lenders insist on a lengthy amount of time remaining on any leasehold property before they will consider it as adequate security. Even if you don't need a mortgage, you should be conscious that it is reasonable to assume that someone intending to purchase your property in the future might well do, so in the event that they can't obtain a mortgage, then the value of the property could suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to accept

What makes us experts in St Anns lease extensions?

Regardless of whether you are a tenant or a landlord in St Anns,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Anns valuers.

St Anns Lease Extension Case Studies:

Luca, St Anns, Nottinghamshire,

Luca owned a 2 bedroom flat in St Anns on the market with a lease of a little over 72 years unexpired. Luca on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.

St Anns case:

Mr Muhammad Peterson moved into a recently refurbished apartment in St Anns in June 2002. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in St Anns with 100 year plus lease were valued around £218,000. The average ground rent payable was £45 invoiced yearly. The lease terminated on 8 November 2089. Having 63 years outstanding we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of fees.

St Anns case:

Mr H Moreau completed a first floor flat in St Anns in November 2003. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in St Anns with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease expired in 2100. Taking into account 74 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.