Why you should start your Queen's Park lease extension

Top reasons for lease extension now:

Increase your lease and increase your Queen's Park property value

Unfortunately that a Queen's Park residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Queen's Park property prices.Once your lease gets to 85ish years, you should 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 below 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Queen's Park will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.

Queen's Park property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Lenders may not loan monies on a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Queen's Park lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with undertake Queen's Park 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.

Queen's Park Lease Extension Case Summaries:

Aarav, Queen's Park, North West London

Half a year ago Aarav, came seriously close to the eighty-year threshold with the lease on his leasehold flat in Queen's Park. Having bought his flat twenty years ago, the lease term was of no importance. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Aarav extended the lease just under the wire last January. Aarav and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If he had missed the deadline, the amount would have gone up by a minimum £1,025.

Queen's Park case:

Last Spring we were e-mailed by Mr O Mitchell , who acquired a newly refurbished apartment in Queen's Park in May 2000. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative properties in Queen's Park with a long lease were valued around £166,400. The average ground rent payable was £60 billed yearly. The lease concluded on 19 March 2080. Given that there were 54 years remaining we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.