St Leonard Shoreditch leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in St Leonard Shoreditch will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in St Leonard Shoreditch,the lease extension experts that we work with will always be happy 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.
Freddie owned a high value flat in St Leonard Shoreditch on the market with a lease of fraction over fifty eight years remaining. Freddie informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Freddie to invoke his statutory right. Freddie procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2009 we were called by Mrs B Mercier who, having took over the lease of a studio apartment in St Leonard Shoreditch in September 2006. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in St Leonard Shoreditch with an extended lease were in the region of £193,400. The average amount of ground rent was £65 collected annually. The lease elapsed on 22 July 2085. Given that there were 59 years remaining we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
An example of a Lease Extension case for a St Leonard Shoreditch residence 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 related to 2 flats. The remaining number of years on the lease was 72.39 years.