Main reasons to start your Stratford lease extension

Why you should start your Stratford lease extension today:

Increase your lease and increase your Stratford property value

The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Stratford can extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Stratford lease extension. Putting off the costs today simply increases the price you will ultimately be required to pay for a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Stratford with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Lending institutions will not issue a mortgage with a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below seventy years as they are regarded as inadequate security.

What makes us experts in Stratford lease extensions?

Irrespective of whether you are a tenant or a landlord in Stratford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stratford valuers.

Stratford Lease Extension Example Cases:

Alexander, Stratford, London,

Alexander owned a conversion flat in Stratford on the market with a lease of a little over 61 years remaining. Alexander on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and secured an acceptable deal informally and readily saleable.

Stratford case:

Last Autumn we were e-mailed by Dr B Rogers , who acquired a purpose-built apartment in Stratford in October 2004. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative flats in Stratford with a long lease were worth £246,800. The average amount of ground rent was £60 invoiced annually. The lease terminated in 2076. Given that there were 50 years unexpired we calculated the premium to the landlord to extend the lease to be between £44,700 and £51,600 not including fees.