Main reasons to commence your Colney Hatch lease extension

Why you should commence your Colney Hatch lease extension today:

Increase your lease and increase your Colney Hatch property value

The market value of a leasehold property in Colney Hatch is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded ahead of the 80 year cut off point. Statute entitles Colney Hatch qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Colney Hatch with in excess of 100 years remaining on the lease are sometimes regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders will not issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This may be problematic once you need to dispose of or remortgage your property as it will be effectively unmortgageable. You might not have an immediate plan to sell but when you do your purchaser must wait 2 years before being able to initiate the legal procedures for a lease extension.

Why use us for your lease extension in Colney Hatch?

Engaging our service gives you enhanced control over the value of your Colney Hatch leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Colney Hatch Lease Extension Example Cases:

Rosie, Colney Hatch, North London,

After lengthy correspondence with the landlord of her one bedroom apartment in Colney Hatch, Rosie initiated the lease extension process as the 80 year threshold was fast coming. The lease extension was concluded in June 2006. The landlord’s costs were restricted to below 550 GBP.

Colney Hatch case:

Dr Eleanor Flores took over the lease of a basement flat in Colney Hatch in November 1995. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparative flats in Colney Hatch with an extended lease were in the region of £280,000. The average ground rent payable was £45 collected annually. The lease ran out in 2096. Taking into account 70 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.