Stop! Your Lease Extension in St John's Wood Could Be FREE

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Many leaseholders in St John's Wood are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in St John's Wood has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Top reasons for St John's Wood lease extension

Why you should start your St John's Wood lease extension today:

A St John's Wood lease depreciates with the years remaining on the lease.

The value of St John's Wood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is below than 80 years

St John's Wood property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.

Lenders may decide not to lend with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become jittery at around 75 years. This will be problematic when you wish to dispose of or remortgage your flat as it will be practically unmortgageable. You may not have an imminent intention to sell but when you do your purchaser will need to hold off for a couple of years before being able to exercise the right to a an extension to the lease.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Chelsea Building Society 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.
Halifax Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaining from the start of the mortgage.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary

Why use us for your lease extension in St John's Wood?

Retaining our service gives you enhanced control over the value of your St John's Wood leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

St John's Wood Lease Extension Case Summaries:

Rory, St John's Wood, London,

Rory owned a high value apartment in St John's Wood on the market with a lease of fraction over 59 years left. Rory on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Rory to exercise his statutory right. Rory obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

St John's Wood case:

Last Spring we were phoned by Dr Leo Cook , who acquired a purpose-built flat in St John's Wood in January 2007. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar properties in St John's Wood with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 invoiced monthly. The lease ran out on 21 June 2101. Having 75 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.

Decision in Camden

An example of a Lease Extension matter before the tribunal for a St John's Wood flat is Garden Flat 195 Goldhurst Terrace in May 2012. The Tribunal held 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 should be £60,855.00. This case affected 1 flat. The unexpired lease term was 60.16 years.