Top reasons for St Pancras lease extension

Top reasons for lease extension now:

A St Pancras lease depreciates with the years remaining on the lease.

The market value of a leasehold property in St Pancras is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed prior to the eighty year mark. Leasehold Reform legislation entitles St Pancras qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

St Pancras property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become jittery at around 75 years. This will cause difficulties when you come to market or remortgage your flat as it will be practically unmortgageable. You may have no immediate plan to sell but when you do your purchaser will need to hold off for 2 years before being able to start the legal procedures for a lease extension.

Why use us for your lease extension in St Pancras?

Irrespective of whether you are a tenant or a landlord in St Pancras,the lease extension solicitors that we work with will always be prepared 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:

Jake, St Pancras, North London

Last Autumn Jake, came critically close to the 80-year mark with the lease on his leasehold apartment in St Pancras. Having bought his home two decades ago, the length of the lease was of no concern. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Jake arranged for a lease extension just under the wire last March. Jake and the freeholder subsequently agreed on an amount of £5,000 . If the lease had gone to less than 80 years, the figure would have increased by a minimum £1,000.

St Pancras case:

In 2011 we were e-mailed by Mr R Davis who, having bought a studio flat in St Pancras in February 2007. The question was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Similar properties in St Pancras with an extended lease were worth £208,600. The average ground rent payable was £60 billed monthly. The lease ran out in 2083. Having 57 years outstanding we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of costs.