Why you should commence your Barnsbury lease extension

Top reasons for lease extension now:

Increase your lease and increase your Barnsbury property value

It’s a harsh truth that a Barnsbury residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Barnsbury property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Barnsbury will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

An extended lease has roughly the same value as a freehold

Leasehold premises in Barnsbury with in excess of one hundred years outstanding 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may decide not to issue a mortgage on a short lease

Most banks and building societies require a lengthy amount of time remaining on a leasehold property before they will contemplate lending on it. Even if you don't need a mortgage, you should be mindful that it is probable that someone wishing to purchase your property in the future might well do, so where they can't get a mortgage, then the market price of the property will likely be adversely impacted. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are willing to accept

Why use us for your lease extension in Barnsbury?

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

Barnsbury Lease Extension Example Cases:

Andrew, Barnsbury, North London,

Andrew owned a high value flat in Barnsbury being sold with a lease of just over 72 years remaining. Andrew on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Andrew to invoke his statutory right. Andrew procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.

Barnsbury case:

Last month we were phoned by Mr and Mrs. D Girard , who took over the lease of a garden apartment in Barnsbury in November 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in Barnsbury with a long lease were in the region of £171,800. The mid-range ground rent payable was £55 invoiced annually. The lease came to a finish on 7 January 2076. Considering the 50 years left we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus legals.