Why you should start your Alexandra Park lease extension

Main reasons to commence your Alexandra Park lease extension today:

A Alexandra Park leasehold property depreciates with the years remaining on the lease.

For anyone whose Alexandra Park home is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Alexandra Park with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders will not issue a mortgage on a short lease

The propensity since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically banks were content with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Alexandra Park lease extensions?

The conveyancers that we work with handle Alexandra 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.

Alexandra Park Lease Extension Case Studies:

Luca, Alexandra Park, North London

Half a year ago Luca, came seriously near to the eighty-year mark with the lease on his one bedroom flat in Alexandra Park. Having bought his flat two decades ago, the lease term was of little significance. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Luca was able to extend his lease just under the wire in July. Luca and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If the lease had gone to less than 80 years, the sum would have become more costly by a minimum £875.

Alexandra Park case:

Last year we were e-mailed by Dr Sebastian Cox , who took over the lease of a garden apartment in Alexandra Park in June 2009. The question was if we could approximate the price could be to extend the lease by an additional years. Identical premises in Alexandra Park with 100 year plus lease were valued about £200,000. The average ground rent payable was £50 invoiced per annum. The lease concluded in 2102. Taking into account 77 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.