Main reasons to commence your Pentonville lease extension

Why you should commence your Pentonville lease extension today:

A Pentonville lease depreciates with the years remaining on the lease.

Pentonville 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 the lease gets more expensive. It is the case that most Pentonville tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Pentonville you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Pentonville with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to issue a mortgage on a short lease

Mortgage companies are really restricting their approach as regards to properties in Pentonville with short leases. For instance you may find that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you needed to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus narrowing your market.

What makes us experts in Pentonville lease extensions?

The conveyancers that we work with handle Pentonville 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 conveyancer we work with provide it.

Pentonville Lease Extension Case Summaries:

Jasper, Pentonville, North London,

Jasper owned a conversion flat in Pentonville being marketed with a lease of fraction over 72 years remaining. Jasper informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.

Pentonville case:

In 2011 we were e-mailed by Mr C Cooper who, having was assigned a lease of a one bedroom apartment in Pentonville in February 2010. The question was if we could estimate the price would be for a ninety year lease extension. Comparative premises in Pentonville with a long lease were valued about £171,800. The average ground rent payable was £55 invoiced monthly. The lease expiry date was in 2076. Taking into account 50 years outstanding we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus legals.