Conveyancing London Lease Extensions

Conveyancing London's short-lease system works as follows : leasehold properties, such as flats, have leases for at least 99 years, but some of those in period buildings, built on the estates of the aristocrats who used to own large parts of central London, have run down their leases to 20 years or less. When these London estates (Portman, Howard De Walden and Cadogan, as well as others ) sell short-lease properties, they have always gone on sale at sub-market prices, sometimes for as little as 50 per cent of their market value.

There is nothing to stop a purchaser of such a flat to negotiate a lease extension from the freeholder, or could buy the freehold itself. To exercise a statutory right to force the landlord for a lease extension or sell the freehold you will need specific conveyancing advice.  The premium would be based on the freeholder's/Landlord’s  willingness to sell, or extend the lease  how much the longer lease would add to the flat's sale price (called "marriage value"), plus compensation calculated with a complicated formulae involving actuarial tables and a "discount rate" based on the current  interest rate at the time.

Complications often occur of conveyancing London lease extensions. For example, a purchaser may find it difficult to get a mortgage on a flat with a lease below 50 years because of a risk that its value could fall further if it proved impossible to negotiate an extension. Also, lease-extension negotiations could drag on for years, leading to conveyancing/legal  costs if the purchaser/tenant take the matter all the way to the door of  a leasehold valuation tribunal.

For specific conveyancing London property lease extensions or conveyancing London property transactions generally please contract the Conveyancing London team at Fridaysmove.