Main reasons to commence your Canonbury lease extension

Why you should start your Canonbury lease extension today:

Increase your lease and increase your Canonbury property value

The market value of a leasehold property in Canonbury depends on how many years the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the lease extension process when a lease still has 82 years to run so that all matters can be concluded ahead of the eighty year threshold. Statute entitles Canonbury qualifying lessees to an additional term of 90 years in addition to the remaining term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Lending institutions will not lend on a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with under 70 years unexpired - although this varies between mortgage companies. A purchaser will likely encounter difficulties to obtain a mortgage and this could result in your Canonbury property being difficult to dispose of or remortgage.

What makes us experts in Canonbury lease extensions?

Retaining 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 want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Canonbury Lease Extension Example Cases:

Seth, Canonbury, North London,

Seth was the the leasehold owner of a 2 bedroom flat in Canonbury being sold with a lease of just over fifty eight years outstanding. Seth on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Seth to invoke his statutory right. Seth obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the property.

Canonbury case:

Last Christmas we were called by Mr and Mrs. U Brown , who bought a studio flat in Canonbury in September 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Canonbury with a long lease were in the region of £233,200. The average amount of ground rent was £60 collected quarterly. The lease ended in 2087. Taking into account 61 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including costs.