Top reasons for Leytonstone lease extension

Why you should start your Leytonstone lease extension today:

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

Unfortunately that a Leytonstone residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Leytonstone property prices.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of 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 The majority of flat owners in Leytonstone will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Leytonstone with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Banks and building societies are tightening their criteria and many now require flats to have at least sixty if not seventy years left once the mortgage has expired. As a number of flats in Leytonstone were created in the fifties, sixties and seventies this means many now need to be extended if they if they are to be mortgageable.

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

Irrespective of whether you are a tenant or a freeholder in Leytonstone,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leytonstone valuers.

Leytonstone Lease Extension Case Summaries:

Jack, Leytonstone, North East London

Two years ago Jack, started to get near to the 80-year mark with the lease on his two bedroom apartment in Leytonstone. Having purchased his flat 19 years previously, the length of the lease was of little significance. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Jack arranged for a lease extension at the eleventh hour last June. Jack and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £875.

Leytonstone case:

Last year we were e-mailed by Dr Molly Khan , who purchased a first floor flat in Leytonstone in August 1995. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Leytonstone with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 collected yearly. The lease ended in 2084. Given that there were 58 years remaining we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.