Why you should start your Barnet lease extension

Why you should start your Barnet lease extension today:

Increase your lease and increase your Barnet property value

The re-sale value of a leasehold property in Barnet depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should anticipate 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 the lease still has 82 years remaining so that a lease extension can be concluded well before the 80 year threshold. Statute entitles Barnet qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of ninety years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Barnet with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 estate charges warrant it.

Lending institutions will not loan monies on a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Barnet lease extensions?

The lawyers that we work with handle Barnet 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 conveyancer we work with provide it.

Barnet Lease Extension Example Cases:

Daniel, Barnet, North London,

Daniel owned a conversion apartment in Barnet being marketed with a lease of fraction over fifty eight years remaining. Daniel on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.

Barnet case:

In 2011 we were approached by Mrs T Gray who, having was assigned a lease of a ground floor apartment in Barnet in June 2008. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in Barnet with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 collected yearly. The lease expired on 28 March 2101. Considering the 75 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.