Top reasons for Barnet lease extension

Top reasons for lease extension now:

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

The re-sale value of a leasehold property in Barnet depends on how long the lease has remaining. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded ahead of the 80 year mark. Statute entitles Barnet qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

Barnet property with a lease extension has roughly the same value as a freehold

Leasehold properties in Barnet with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may decide not to lend on a short lease

Most banks and building societies will not lend on a lease with under seventy years unexpired - although this varies from lender to lender. A buyer will likely find it difficult in obtaining a mortgage and this could result in your Barnet property being difficult to sell or to obtain finance on.

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

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

Barnet Lease Extension Case Summaries:

Alexandra, Barnet, North London,

Following unsuccessful discussions with the landlord of her ground floor flat in Barnet, Alexandra initiated the lease extension process just as the lease was approaching the crucial 80-year threshold. The lease extension was concluded in March 2011. The landlord’s costs were restricted to under 650 GBP.

Barnet case:

In 2010 we were approached by Mrs G Martínez who, having was assigned a lease of a purpose-built flat in Barnet in July 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Identical flats in Barnet with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease came to a finish on 20 October 2086. Having 60 years left we approximated the premium to the freeholder to extend the lease to be between £25,700 and £29,600 not including costs.