Main reasons to commence your Camden lease extension

Top reasons for lease extension now:

Increase your lease and increase your Camden property value

When it comes to long leasehold property in Camden, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Leasehold owners in Camden with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has below 80 years left, under the relevant legislation the freeholder can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold properties in Camden with in excess of 100 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Lenders will not lend with a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to get jittery at around 75 years. This will cause difficulties once you come to sell or refinance your flat as it will be effectively unmortgageable. Even though you may have no imminent desire to sell but when you do your purchaser must wait two years before they can commence the legal procedures for a lease extension.

What makes us experts in Camden lease extensions?

Irrespective of whether you are a tenant or a landlord in Camden,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 experience and the close ties they enjoy with Camden valuers.

Camden Lease Extension Example Cases:

Tyler, Camden, North London

In recent months Tyler, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Camden. Having bought his property twenty years previously, the lease term was of little bearing. Fortunately, he recognised he would soon be paying way over the odds for Extending the lease. Tyler arranged for a lease extension at the eleventh hour last May. Tyler and the freeholder via the management company ultimately agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £975.

Camden case:

Mr and Mrs. U Johnson was assigned a lease of a one bedroom apartment in Camden in June 2010. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar homes in Camden with an extended lease were in the region of £290,000. The average amount of ground rent was £45 billed monthly. The lease ended on 21 March 2099. Taking into account 73 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.