Why you should start your St Leonard Shoreditch lease extension

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

A St Leonard Shoreditch lease depreciates with the years remaining on the lease.

The market value of St Leonard Shoreditch leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than eighty years

St Leonard Shoreditch property with a lease extension has roughly the same value as a freehold

Leasehold premises in St Leonard Shoreditch with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lenders may not grant a mortgage with a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically lenders would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in St Leonard Shoreditch?

Regardless of whether you are a tenant or a freeholder in St Leonard Shoreditch,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 experience and the close ties they enjoy with St Leonard Shoreditch valuers.

St Leonard Shoreditch Lease Extension Case Studies:

Chantelle, St Leonard Shoreditch, London,

After lengthy negotiations with the landlord of her purpose-built apartment in St Leonard Shoreditch, Chantelle commenced the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work completed in February 2010. The freeholder’s fees were kept to an absolute minimum.

St Leonard Shoreditch case:

In 2014 we were called by Ms D Johnson who, having moved into a one bedroom apartment in St Leonard Shoreditch in May 2004. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar residencies in St Leonard Shoreditch with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease finished on 16 May 2096. Considering the 70 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.