Main reasons to start your St Pancras lease extension

Top reasons for lease extension now:

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

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in St Pancras. Inevitably, the period of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in St Pancras have the right to extend the lease for a further ninety years under legislation. Do give due consideration before putting off your St Pancras lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease

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 one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders will not loan monies on a short lease

Most banks and building societies will not grant a mortgage on a lease with under 70 years left to run - although this varies between mortgage companies. A purchaser will no doubt encounter difficulties in obtaining a mortgage and this could result in your St Pancras property being difficult to sell or refinance.

Get in touch with one of our St Pancras lease extension solicitors or enfranchisement solicitors

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:

Isaac, St Pancras, North London

During the course of the last few months Isaac, started to get close to the 80-year threshold with the lease on his studio apartment in St Pancras. In buying his flat two decades ago, the lease term was of no bearing. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Isaac was able to extend his lease at the eleventh hour last July. Isaac and the landlord subsequently settled on an amount of £5,500 . If the lease had gone below eighty years, the sum would have escalated by a minimum £875.

St Pancras case:

Last September we were phoned by Mr and Mrs. K Simon , who owned a first floor flat in St Pancras in February 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in St Pancras with an extended lease were worth £275,000. The mid-range ground rent payable was £45 invoiced monthly. The lease finished on 1 September 2095. Given that there were 69 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.