Main reasons to commence your St Luke's lease extension

Top reasons for lease extension now:

Increase your lease and increase your St Luke's property value

St Luke's leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. Flat owners in St Luke's will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lending institutions will not lend with a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below seventy years as they are deemed to be inadequate security.

Why use us for your lease extension in St Luke's?

The conveyancing solicitors that we work with handle St Luke's 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 Luke's Lease Extension Example Cases:

Rhiannon, St Luke's, North London,

After lengthy discussions with the freeholder of her garden flat in St Luke's, Rhiannon commenced the lease extension process as the eighty year deadline was swiftly nearing. The transaction was finalised in June 2012. The freeholder’s charges were restricted to under four hundred pounds.

St Luke's case:

Last March we were contacted by Ms Ellen Smith , who bought a purpose-built apartment in St Luke's in April 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar properties in St Luke's with a long lease were in the region of £270,000. The average ground rent payable was £55 invoiced annually. The lease expiry date was on 22 November 2101. Taking into account 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.