Main reasons to start your Barnet lease extension

Top reasons for lease extension now:

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

The market value of a leasehold property in Barnet depends on how many years the lease has left to run. If it is close to or less than eighty years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded in advance of the eighty year threshold. Leasehold Reform legislation enables Barnet qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

Barnet property with a lease extension is almost the same value as a freehold

Leasehold residencies in Barnet with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lenders will not grant a mortgage with a short lease

Nearly all banks and building societies will be unwilling to lend on a lease with less than seventy years remaining - although this varies from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Barnet property being difficult to sell or refinance.

Why use us for your lease extension in Barnet?

Retaining our service will provide you increased control over the value of your Barnet leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Barnet Lease Extension Example Cases:

Kayleigh, Barnet, North London,

In the wake of 9 months of protracted discussions with the landlord of her one bedroom apartment in Barnet, Kayleigh initiated the lease extension process as the eighty year mark was fast advancing. The transaction was finalised in September 2006. The freeholder’s charges were negotiated to less than 600 pounds.

Barnet case:

Last Summer we were e-mailed by Ms Mollie White , who owned a studio flat in Barnet in February 2011. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative properties in Barnet with an extended lease were in the region of £280,000. The average ground rent payable was £45 invoiced annually. The lease lapsed on 11 May 2095. Taking into account 70 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.