Top reasons for St Pancras lease extension

Why you should commence your St Pancras lease extension today:

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

It’s a harsh truth that a St Pancras residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the St Pancras property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in St Pancras will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.

An extended lease is almost the same value as a freehold

It is generally considered that a property with over 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 worth the same as a freehold for many years ahead.

Lenders may decide not to loan monies with a short lease

Mortgage companies are really clamping down as regards to homes in St Pancras with short leases. For instance you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus restricting the number of potential purchasers.

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

Lease extensions in St Pancras can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with St Pancras lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

St Pancras Lease Extension Example Cases:

Rebecca, St Pancras, North London,

After protracted negotiations with the freeholder of her basement apartment in St Pancras, Rebecca commenced the lease extension process just as her lease was nearing the critical eighty-year mark. The legal work completed in April 2011. The freeholder’s fees were kept to an absolute minimum.

St Pancras case:

In 2010 we were e-mailed by Mr and Mrs. I Martinez who, having bought a one bedroom apartment in St Pancras in February 2005. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar flats in St Pancras with 100 year plus lease were valued about £210,000. The average ground rent payable was £50 billed every twelve months. The lease end date was on 22 June 2106. Taking into account 80 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.