Main reasons to commence your Barnsbury lease extension

Top reasons for lease extension now:

Increase your lease and increase your Barnsbury property value

Barnsbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Barnsbury enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Barnsbury you must see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

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

Leasehold residencies in Barnsbury with over 100 years left 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may not grant a mortgage on a short lease

Lending institutions have set criteria when lending funds charged on leasehold homes. Many will simply not lend at all once an unexpired lease term falls beneath a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than seventy years suitable security. In addition to impacting your ability to sell, it is also relevant if you are intending to remortgage your Barnsbury property.

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

Lease extensions in Barnsbury can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Barnsbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Barnsbury Lease Extension Case Studies:

Leo, Barnsbury, North London,

Leo was the the leasehold proprietor of a studio flat in Barnsbury on the market with a lease of a few days over fifty eight years remaining. Leo informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leo to invoke his statutory right. Leo obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the flat.

Barnsbury case:

Mr and Mrs. I Laurent purchased a one bedroom apartment in Barnsbury in June 2005. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Barnsbury with a long lease were in the region of £200,000. The average ground rent payable was £50 billed every twelve months. The lease expired on 6 October 2103. Having 77 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.