Main reasons to start your St Pancras lease extension

Main reasons to start your St Pancras lease extension today:

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

St Pancras leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying St Pancras residential leaseholders to extend the terms of long leases. If you are a leasehold owner in St Pancras you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

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

Leasehold properties in St Pancras with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not finance a property with 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 criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you needed to sell, your only options would be to find a cash buyer, or hope for the best at auction thus reducing your market.

What makes us experts in St Pancras lease extensions?

Lease extensions in St Pancras can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 procuring 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 Case Summaries:

Isabel, St Pancras, North London,

Trailing protracted discussions with the freeholder of her first floor flat in St Pancras, Isabel commenced the lease extension process just as her lease was coming close to the crucial 80-year threshold. The legal work was concluded in February 2014. The freeholder’s costs were negotiated to a tad over 600 GBP.

St Pancras case:

Mr Samuel Rivera completed a ground floor flat in St Pancras in June 2000. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Identical homes in St Pancras with a long lease were valued about £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease elapsed in 2099. Considering the 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.