Top reasons for Canonbury lease extension

Why you should start your Canonbury lease extension today:

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

Canonbury leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher premium will be due. Flat owners in Canonbury will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Canonbury with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lenders may not loan monies with a short lease

Mortgage lenders have specific criteria when loaning monies charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term drops under a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than seventy years suitable security. In addition to this being important when selling, it is also relevant where you are wanting to remortgage your Canonbury home.

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

Irrespective of whether you are a tenant or a freeholder in Canonbury,the lease extension solicitors 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 Canonbury valuers.

Canonbury Lease Extension Example Cases:

Alfie, Canonbury, North London,

Alfie was the the leasehold proprietor of a conversion apartment in Canonbury on the market with a lease of fraction over sixty years unexpired. Alfie on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Canonbury case:

Last year we were e-mailed by Dr D Roberts , who purchased a garden flat in Canonbury in October 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Canonbury with an extended lease were worth £275,000. The average amount of ground rent was £45 collected quarterly. The lease ended on 13 May 2095. Having 69 years remaining we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.