Main reasons to 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.

As the the remaining lease term of a St Leonard Shoreditch domestic lease lessens so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in St Leonard Shoreditch will meet the qualifying criteria; however a lawyer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

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

Lending institutions may decide not to loan monies on a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on any leasehold property before they will contemplate providing a mortgage on it. Regardless of whether you require a mortgage, you should be mindful that it is likely that someone wanting to acquire your property in the future might well do, so where they are not able to get a mortgage, then the value of your property will likely be adversely impacted. In the last decade many banks and building societies have increased the required minimum lease length that they are willing to lend on

What makes us experts in St Leonard Shoreditch lease extensions?

Regardless of whether you are a tenant or a freeholder in St Leonard Shoreditch,the lease extension lawyers that we work with will always be willing 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 Leonard Shoreditch valuers.

St Leonard Shoreditch Lease Extension Case Studies:

Max, St Leonard Shoreditch, London,

Max owned a studio apartment in St Leonard Shoreditch on the market with a lease of a little over 72 years left. Max on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Max to invoke his statutory right. Max obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.

St Leonard Shoreditch case:

Last month we were phoned by Mr and Mrs. E Parker , who bought a first floor apartment in St Leonard Shoreditch in July 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparable premises in St Leonard Shoreditch with 100 year plus lease were valued around £218,000. The average ground rent payable was £45 collected annually. The lease came to a finish on 27 September 2089. Having 63 years left we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 plus legals.