Top reasons for Canonbury lease extension

Top reasons for lease extension now:

A Canonbury lease depreciates with the years remaining on the lease.

For anyone whose Canonbury flat is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.

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

It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lenders may not grant a mortgage on a short lease

Mortgage lenders have set criteria when lending monies secured on leasehold homes. Some will simply refuse lend at all once the remaining lease term slips beneath a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than 75 years as acceptable security. As well as this being important when selling, it is also relevant if you are intending to remortgage your Canonbury property.

Why use us for your lease extension in Canonbury?

Using our service gives you better control over the value of your Canonbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Canonbury Lease Extension Case Summaries:

James, Canonbury, North London

During the course of the last few months James, came perilously near to the eighty-year mark with the lease on his leasehold flat in Canonbury. In buying his flat twenty years ago, the lease term was of minimal concern. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. James was able to extend his lease at the eleventh hour in September. James and the landlord who owned the flat above in the end settled on an amount of £5,500 . If the lease had slid below 80 years, the price would have gone up by a minimum £1,000.

Canonbury case:

Last month we were approach by Mrs Isabelle Young , who took over the lease of a first floor apartment in Canonbury in May 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Canonbury with a long lease were worth £257,800. The mid-range ground rent payable was £65 billed every twelve months. The lease ran out in 2091. Considering the 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus professional charges.