Why you should start your Barnet lease extension

Top reasons for lease extension now:

A Barnet lease depreciates with the years remaining on the lease.

With a long leasehold premises in Barnet, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years left. Anyone in Barnet with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has under eighty years remaining, under the current Act the landlord can calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.

Lending institutions may decide not to lend with a short lease

The trend since 2008 has been for mortgage companies 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 resulted in the unexpired lease term required by mortgage companies has increased. Historically mortgage companies 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 now have a minimum term of 75 years as standard.

Why use us for your lease extension in Barnet?

Retaining our service will provide you enhanced control over the value of your Barnet leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Barnet Lease Extension Case Studies:

Ryan, Barnet, North London

In 2014 Ryan, came perilously close to the 80-year mark with the lease on his ground floor apartment in Barnet. In buying his flat 18 years previously, the lease term was of minimal concern. Thankfully, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Ryan was able to extend his lease just ahead of time last September. Ryan and the landlord who owned the flat above subsequently settled on sum of £5,500 . If the lease had descended below eighty years, the figure would have gone up by a minimum £1,075.

Barnet case:

Dr Katie Lewis was assigned a lease of a basement flat in Barnet in April 2011. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparative premises in Barnet with an extended lease were worth £267,600. The average amount of ground rent was £65 billed annually. The lease ran out on 1 June 2093. Having 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 not including professional charges.