Why you should commence your Burnt Oak lease extension

Why you should start your Burnt Oak lease extension today:

Increase your lease and increase your Burnt Oak property value

It’s a harsh truth that a Burnt Oak residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Burnt Oak property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term slips under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Burnt Oak will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.

Burnt Oak property with a lease extension is almost the same value as a freehold

It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.

Lenders will not loan monies on a short lease

Most banks and building societies require a lengthy amount of time remaining on a leasehold property before they will consider providing a mortgage on it. Regardless of whether you need a mortgage, you should be conscious that it is probable that someone intending to buy your property in the future might well do, so if they are not able to secure a mortgage, then the financial worth of your 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 prepared to grant a mortgage on

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

Regardless of whether you are a tenant or a landlord in Burnt Oak,the lease extension experts 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 Burnt Oak valuers.

Burnt Oak Lease Extension Example Cases:

Jude, Burnt Oak, North London,

Jude owned a 2 bedroom flat in Burnt Oak being sold with a lease of just over 72 years outstanding. Jude on an informal basis spoke with his freeholder a well known London-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 a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert advice and was able to make an informed decision and handle with the matter and sell the property.

Burnt Oak case:

Dr A Khan completed a first floor apartment in Burnt Oak in May 2007. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable flats in Burnt Oak with a long lease were valued about £225,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out on 6 January 2086. Taking into account 60 years left we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including expenses.