Top reasons for Islington lease extension

Why you should start your Islington lease extension today:

A Islington leasehold property depreciates with the years remaining on the lease.

When it comes to domestic leasehold premises in Islington, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Islington with a lease nearing 81 years remaining should seriously consider extending it without delay. Once a lease has below eighty years outstanding, under the current statute the landlord can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold premises in Islington with more than 100 years left on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may decide not to grant a mortgage on a short lease

Lenders are really restricting their approach as regards to properties in Islington with short leases. For instance you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus narrowing your market.

What makes us experts in Islington lease extensions?

The lawyers that we work with undertake Islington 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.

Islington Lease Extension Example Cases:

Kirsty, Islington, North London,

In the wake of 9 months of lengthy correspondence with the freeholder of her studio apartment in Islington, Kirsty commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The transaction completed in March 2013. The freeholder’s fees were restricted to a tad over 600 pounds.

Islington case:

Mr and Mrs. F Ramírez moved into a basement apartment in Islington in September 1997. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative premises in Islington with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 collected annually. The lease ended in 2087. Taking into account 61 years left we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of costs.