Our client owned a property in Grosvenor Square with a short lease of 13 years for which reason he needed to extend the lease.
Having done some initial enquiring, he had been quoted £1.7 million for a lease extension of 90 years on top of the remaining 13 years.
The current value of the property with the short lease was estimated at £1.3 million but it was estimated to be worth £3.4 million post extension – significantly increasing the value of the property.
The existing mortgage of £500k needed to be replaced as the existing lender was asking for the loan to be redeemed due to the lease length. The client also wanted to raise some additional funds in order to complete much needed refurbishment works in between tenants. For this reason he needed a short lease mortgage extension to fund the various elements relating to the property.