Why you should start your Barnet lease extension

Main reasons to start your Barnet lease extension today:

Increase your lease and increase your Barnet property value

With a long leasehold premises in Barnet, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Anyone in Barnet with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the current statute the landlord can calculate and demand a larger amount, based on a technical computation, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not loan monies with a short lease

Most banks and building societies will be unwilling to lend on a lease with less than 70 years unexpired - although this varies between mortgage companies. A buyer will no doubt encounter difficulties to obtain a mortgage and this could result in your Barnet property being difficult to dispose of or to obtain finance on.

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

Regardless of whether you are a tenant or a landlord in Barnet,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barnet valuers.

Barnet Lease Extension Case Summaries:

Alfie, Barnet, North London

Last Winter Alfie, started to get close to the eighty-year mark with the lease on his garden flat in Barnet. In buying his home two decades ago, the lease term was of minimal concern. Thankfully, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Alfie arranged for a lease extension just under the wire last July. Alfie and the landlord ultimately settled on a premium of £5,500 . If he not met the deadline, the amount would have increased by at least £1,150.

Barnet case:

Ms M Campbell owned a one bedroom apartment in Barnet in September 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative flats in Barnet with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished on 2 September 2105. Taking into account 79 years remaining we calculated the compensation to the landlord to extend the lease to be between £7,600 and £8,800 plus legals.