Main reasons to commence your Dartmouth Park lease extension

Top reasons for lease extension now:

A Dartmouth Park lease depreciates with the years remaining on the lease.

It’s an underpublicised certainty that a Dartmouth Park residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Dartmouth Park property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in Dartmouth Park will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders will not finance a property with a short lease

Mortgage lenders have set criteria when loaning funds charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term slips below a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are intending to refinance your Dartmouth Park property.

What makes us experts in Dartmouth Park lease extensions?

The conveyancing solicitors that we work with procure Dartmouth Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Dartmouth Park Lease Extension Case Summaries:

Mason, Dartmouth Park, North London

18 months ago Mason, started to get near to the 80-year mark with the lease on his garden flat in Dartmouth Park. In buying his flat 18 years previously, the unexpired term was of minimal relevance. by good luck, he became aware that he would soon be paying an inflated amount for Extending the lease. Mason arranged for a lease extension at the eleventh hour in March. Mason and the freeholder via the management company eventually agreed on a premium of £5,500 . If the lease had fallen below 80 years, the amount would have escalated by at least £925.

Dartmouth Park case:

In 2011 we were approached by Mr Eli Brown who, having was assigned a lease of a basement flat in Dartmouth Park in February 2007. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparative properties in Dartmouth Park with an extended lease were in the region of £260,200. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 25 November 2092. Considering the 66 years left we calculated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of legals.