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.

Main reasons to commence your St John's Wood lease extension

Main reasons to commence your St John's Wood lease extension today:

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

It’s an underpublicised truth that a St John's Wood residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the St John's Wood property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to 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 Most flat owners in St John's Wood will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.

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

Leasehold properties in St John's Wood with more than one hundred years unexpired 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 maintenance charges warrant it.

Mortgage lenders may decide not to issue a mortgage on a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly below 75 years as they are considered to be unacceptable for lending purposes.

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;
Leeds Building Society 85 years remaining from the start of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
Yorkshire 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.

What makes us experts in St John's Wood lease extensions?

Engaging our service will provide you increased control over the value of your St John's Wood leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

St John's Wood Lease Extension Case Summaries:

Jack, St John's Wood, London,

Jack was the the leasehold proprietor of a high value flat in St John's Wood being sold with a lease of a few days over 72 years outstanding. Jack informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jack to exercise his statutory right. Jack obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.

St John's Wood case:

In 2012 we were phoned by Mr and Mrs. D Gunderson who, having purchased a recently refurbished flat in St John's Wood in July 2010. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative premises in St John's Wood with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected monthly. The lease end date was in 2094. Having 68 years outstanding we calculated the premium to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of costs.

Decision in Camden

An example of a Lease Extension matter before the tribunal for a St John's Wood residence 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 was in relation to 1 flat. The remaining number of years on the lease was 60.16 years.