Why you should commence your Lansbury lease extension

Top reasons for lease extension now:

A Lansbury lease depreciates with the years remaining on the lease.

Lansbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Lansbury tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Lansbury you should see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

Lansbury 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 remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies may not finance a property on a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are considered to be unacceptable security.

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

Regardless of whether you are a tenant or a landlord in Lansbury,the lease extension lawyers 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 Lansbury valuers.

Lansbury Lease Extension Example Cases:

Michael, Lansbury, London,

Michael was the the leasehold owner of a high value apartment in Lansbury being sold with a lease of fraction over fifty eight years outstanding. Michael on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.

Lansbury case:

In 2011 we were approached by Mrs Abbie Anderson who, having moved into a basement flat in Lansbury in February 2012. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Lansbury with 100 year plus lease were in the region of £257,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease expired in 2091. Given that there were 65 years left we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.