Top reasons for Islington lease extension

Top reasons for lease extension now:

Increase your lease and increase your Islington property value

Islington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Islington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Islington you would be well advised to see if your lease has between seventy and 90 years left. There are compelling reasons why a Islington flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay

Islington property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

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

Most mortgage lenders have constrained their lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are regarded as unacceptable security.

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

Regardless of whether you are a tenant or a landlord in Islington,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Islington valuers.

Islington Lease Extension Case Studies:

Luca, Islington, North London

During the course of the last few months Luca, came very near to the 80-year mark with the lease on his studio apartment in Islington. Having purchased his home two decades ago, the length of the lease was of minimal significance. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Luca extended the lease just in the nick of time last April. Luca and the freeholder via the managing agents ultimately settled on a premium of £5,000 . If the lease had dipped to less than eighty years, the price would have gone up by a minimum £1,075.

Islington case:

Last Christmas we were called by Dr U Patel , who took over the lease of a basement flat in Islington in November 2008. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Similar flats in Islington with a long lease were valued about £213,600. The average amount of ground rent was £60 collected annually. The lease concluded in 2083. Considering the 57 years outstanding we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including expenses.