Top reasons for St Leonard Shoreditch lease extension

Main reasons to start your St Leonard Shoreditch lease extension today:

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

There is no doubt about it a leasehold property in St Leonard Shoreditch is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in St Leonard Shoreditch will qualify for this right; nevertheless a conveyancing solicitor can confirm if you are eligible to extend your lease. In limited 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 has roughly the same value as a freehold

Leasehold properties in St Leonard Shoreditch with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may decide not to lend on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to get jittery at around 75 years. This may be problematic once you wish to market or refinance your property as it will be practically unmortgageable. Even though you may have no immediate plan to sell but when you do your buyer will have to hold off for 2 years before they can initiate the legal procedures for an extension to the lease.

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

Engaging our service will provide you enhanced control over the value of your St Leonard Shoreditch leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

St Leonard Shoreditch Lease Extension Case Studies:

Jasper, St Leonard Shoreditch, London,

Jasper owned a conversion flat in St Leonard Shoreditch on the market with a lease of fraction over sixty years unexpired. Jasper informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.

St Leonard Shoreditch case:

Ms Sophia Morel purchased a first floor flat in St Leonard Shoreditch in April 2004. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable residencies in St Leonard Shoreditch with an extended lease were worth £254,200. The average amount of ground rent was £60 billed per annum. The lease lapsed in 2077. Considering the 51 years outstanding we calculated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus professional charges.