Why you should start your Alexandra Park lease extension

Why you should commence your Alexandra Park lease extension today:

Increase your lease and increase your Alexandra Park property value

With a long leasehold premises in Alexandra Park, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease 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 especially once there are less than eighty years remaining. Residents in Alexandra Park with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When the lease term has under eighty years remaining, under the relevant statute the landlord can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may not grant a mortgage with a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are considered to be insufficient security.

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

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 Example Cases:

Felix, Alexandra Park, North London,

Felix was the the leasehold proprietor of a 2 bedroom flat in Alexandra Park being sold with a lease of a little over fifty eight years outstanding. Felix informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and secured an acceptable deal without going to tribunal and sell the flat.

Alexandra Park case:

Last Summer we were contacted by Dr V Gómez , who took over the lease of a garden flat in Alexandra Park in August 2009. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Similar homes in Alexandra Park with a long lease were worth £290,000. The average amount of ground rent was £45 billed every twelve months. The lease end date was in 2098. Taking into account 72 years outstanding we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus fees.