St Leonard Shoreditch Lease Extension - Free Consultation

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Main reasons to start your St Leonard Shoreditch lease extension

Why you should commence your St Leonard Shoreditch lease extension today:

Increase your lease and increase your St Leonard Shoreditch property value

As the the remaining lease term of a St Leonard Shoreditch residential lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in St Leonard Shoreditch will qualify for this right; however a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold premises in St Leonard Shoreditch with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Lenders may decide not to issue a mortgage with a short lease

Banks and building societies do not like short residential leases. You are likely to encounter problems if you need to sell your flat in St Leonard Shoreditch if the remaining lease term is below the criteria set by most lenders. Different lenders have varying requirements but in the main they are looking for a minimum remaining lease term of seventy years.

Lender Requirement
Accord Mortgages 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.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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;
Halifax Minimum 70 years from the date of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
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.

Get in touch with one of our St Leonard Shoreditch lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with undertake St Leonard Shoreditch 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 conveyancer we work with provide it.

St Leonard Shoreditch Lease Extension Example Cases:

Chloe, St Leonard Shoreditch, London,

Off the back of protracted discussions with the landlord of her ground floor flat in St Leonard Shoreditch, Chloe started the lease extension process just as her lease was nearing the all-important 80-year deadline. The lease extension was finalised in August 2008. The landlord’s fees were kept to an absolute minimum.

St Leonard Shoreditch case:

In 2014 we were e-mailed by Mr and Mrs. N Simon who, having moved into a one bedroom apartment in St Leonard Shoreditch in April 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in St Leonard Shoreditch with a long lease were in the region of £193,400. The average amount of ground rent was £65 collected annually. The lease expired in 2083. Considering the 59 years left we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including legals.

Decision in Hackney

An example of a Lease Extension decision for a St Leonard Shoreditch flat is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines 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 for each Property should be £12,350.00. This case affected 2 flats. The number of years remaining on the existing lease(s) was 72.39 years.