Why you should commence your St Pancras lease extension

Why you should commence your St Pancras lease extension today:

Increase your lease and increase your St Pancras property value

As the the remaining lease term of a St Pancras residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in St Pancras will meet the qualifying criteria; that being said a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

St Pancras property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property 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 equivalent in value to a freehold for decades to come.

Lenders may not loan monies on a short lease

Lenders are really restricting their approach as regards to properties in St Pancras with short leases. For example you may find that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction thus restricting the number of potential buyers.

What makes us experts in St Pancras lease extensions?

Irrespective of whether you are a tenant or a landlord in St Pancras,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Pancras valuers.

St Pancras Lease Extension Example Cases:

Jude, St Pancras, North London

Half a year ago Jude, came critically near to the eighty-year threshold with the lease on his basement apartment in St Pancras. Having purchased his flat two decades ago, the unexpired term was of little importance. Fortunately, he realised he would imminently be paying an escalated premium for a lease extension. Jude arranged for a lease extension at the eleventh hour in March. Jude and the freeholder via the management company eventually agreed on a premium of £5,000 . If the lease had descended below eighty years, the premium would have gone up by a minimum £1,125.

St Pancras case:

In 2010 we were called by Mrs Lucy Díaz who, having was assigned a lease of a first floor apartment in St Pancras in November 2009. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in St Pancras with 100 year plus lease were valued around £233,200. The mid-range amount of ground rent was £60 collected annually. The lease came to a finish on 3 June 2087. Given that there were 61 years remaining we approximated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus professional charges.