Top reasons for St John's Wood lease extension

Top reasons for lease extension now:

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

Unfortunately that a St John's Wood residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the St John's Wood property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in St John's Wood will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.

St John's Wood property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders may not lend with a short lease

Many mortgage companies require a lengthy amount of time remaining on a leasehold residence before they will contemplate providing a mortgage on it. Even if you don't need a mortgage, you should be mindful that it is reasonable to assume that someone wishing to purchase your property in the future might well do, so in the event that they can't secure a mortgage, then the financial worth of the property will likely be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are willing to accept

Get in touch with one of our St John's Wood lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in St John's Wood,the lease extension lawyers that we work with will always be happy 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 John's Wood valuers.

St John's Wood Lease Extension Case Studies:

Kirsty, St John's Wood, London,

Trailing lengthy discussions with the landlord of her garden apartment in St John's Wood, Kirsty started the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension completed in June 2012. The freeholder’s costs were restricted to about 650 GBP.

St John's Wood case:

Last Spring we were contacted by Mrs Isabella Rodríguez , who was assigned a lease of a ground floor flat in St John's Wood in June 2000. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar homes in St John's Wood with a long lease were worth £173,800. The mid-range amount of ground rent was £65 billed per annum. The lease concluded in 2081. Taking into account 55 years remaining we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.