Why you should commence your Totteridge lease extension

Main reasons to start your Totteridge lease extension today:

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

When it comes to residential leasehold property in Totteridge, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years left. Anyone in Totteridge with a lease nearing 81 years left should seriously think of extending it as soon as possible. When a lease has below eighty years left, under the relevant Act the landlord is entitled to calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.

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

Leasehold properties in Totteridge with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to finance a property with a short lease

Mortgage lenders have specific criteria when lending monies secured on leasehold property. Some will simply refrain from lending at all once the residual lease term goes below a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below 75 years suitable security. In addition to this being important when selling, it is also relevant where you are intending to remortgage your Totteridge property.

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

Irrespective of whether you are a tenant or a freeholder in Totteridge,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Totteridge valuers.

Totteridge Lease Extension Example Cases:

Chloe, Totteridge, North London,

After lengthy negotiations with the landlord of her purpose-built flat in Totteridge, Chloe commenced the lease extension process as the eighty year mark was swiftly nearing. The legal work completed in January 2008. The freeholder’s charges were negotiated to under 650 pounds.

Totteridge case:

Mr and Mrs. R Morel acquired a purpose-built flat in Totteridge in January 1998. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical premises in Totteridge with a long lease were in the region of £285,000. The average ground rent payable was £45 invoiced per annum. The lease came to a finish on 22 January 2097. Considering the 71 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.