Why you should commence your Pinner lease extension

Top reasons for lease extension now:

Increase your lease and increase your Pinner property value

When it comes to residential leasehold premises in Pinner, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in Pinner with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has less than eighty years remaining, under the relevant statute the freeholder can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.

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

Leasehold properties in Pinner with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Lenders will not issue a mortgage on a short lease

Almost all banks and building societies insist on a lengthy amount of time remaining on any leasehold property before they will consider providing a mortgage on it. Even if you don't require a mortgage, you should bear in mind that it is likely that someone wanting to acquire your property in the future might well do, so in the event that they can't obtain a mortgage, then the value of the property could be adversely impacted. Since 2008 many mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

The lawyers that we work with handle Pinner 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.

Pinner Lease Extension Example Cases:

Jayden, Pinner, North London,

Jayden was the the leasehold owner of a high value flat in Pinner being sold with a lease of a little over 72 years unexpired. Jayden on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.

Pinner case:

Ms Y Ramírez bought a one bedroom flat in Pinner in January 1999. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Identical properties in Pinner with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 collected every twelve months. The lease lapsed in 2081. Taking into account 56 years as a residual term we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of fees.