Top reasons for Islington lease extension

Main reasons to commence your Islington lease extension today:

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

Unfortunately that a Islington residential lease is a deteriorating 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 deflation being disguised by increases in the Islington property market.Once your lease gets to 85ish years, you need to start considering 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 dips under eighty years - otherwise a higher amount will be payable. Most flat owners in Islington will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to issue a mortgage with a short lease

Lenders do not like short residential leases. You most probably encounter problems where you wish to sell your flat in Islington if the unexpired term of your lease is under the criteria set by most mortgage companies. Different mortgage companies have varying requirements but generally they are looking for an unexpired term of at least seventy years.

Get in touch with one of our Islington lease extension solicitors or enfranchisement solicitors

Engaging our service gives you enhanced control over the value of your Islington leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Islington Lease Extension Example Cases:

Ethan, Islington, North London

Last October Ethan, came precariously close to the 80-year mark with the lease on his one bedroom apartment in Islington. In buying his flat two decades ago, the lease term was of no interest. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Ethan extended the lease just in the nick of time last January. Ethan and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £975.

Islington case:

Last Christmas we were called by Dr J Mercier , who completed a garden flat in Islington in November 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Islington with 100 year plus lease were valued around £189,000. The average ground rent payable was £55 collected monthly. The lease concluded in 2079. Taking into account 53 years unexpired we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.