Main reasons to commence your Leytonstone lease extension

Why you should commence your Leytonstone lease extension today:

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

The nearer a domestic lease in Leytonstone nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Leytonstone will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not finance a property with a short lease

Most mortgage lenders have tightened lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly below 75 years as they are regarded as insufficient for lending purposes.

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

Retaining our service gives you increased control over the value of your Leytonstone leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Leytonstone Lease Extension Case Studies:

Hunter, Leytonstone, North East London,

Hunter owned a 2 bedroom apartment in Leytonstone on the market with a lease of just over 72 years left. Hunter on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Hunter to exercise his statutory right. Hunter obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.

Leytonstone case:

Last Winter we were contacted by Mr and Mrs. H Bell , who purchased a one bedroom flat in Leytonstone in October 2007. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Leytonstone with an extended lease were worth £171,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease lapsed in 2076. Given that there were 50 years remaining we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including professional charges.