Why you should start your Canning Town lease extension

Top reasons for lease extension now:

A Canning Town lease depreciates with the years remaining on the lease.

The only way is down when it comes to Canning Town lease terms. Canning Town properties that have a remaining term less than than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will rise.

An extended lease is almost the same value as a freehold

Leasehold properties in Canning Town with more than 100 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders will not loan monies with a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. In the past banks would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

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

Canning Town Lease Extension Case Summaries:

Finley, Canning Town, London,

Finley was the the leasehold proprietor of a 2 bedroom flat in Canning Town on the market with a lease of a little over sixty years outstanding. Finley on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Finley to invoke his statutory right. Finley procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.

Canning Town case:

Last Summer we were contacted by Mr and Mrs. N Morgan , who acquired a first floor apartment in Canning Town in January 2004. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparable residencies in Canning Town with 100 year plus lease were worth £246,800. The mid-range ground rent payable was £60 billed per annum. The lease terminated on 13 January 2076. Considering the 50 years remaining we approximated the premium to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of professional charges.