Top reasons for Chipping Barnet lease extension

Why you should commence your Chipping Barnet lease extension today:

A Chipping Barnet lease depreciates with the years remaining on the lease.

It’s a harsh certainty that a Chipping Barnet residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Chipping Barnet property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Chipping Barnet will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Chipping Barnet with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not loan monies on a short lease

Almost all banks and building societies will not grant a mortgage on a lease with less than seventy years unexpired - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult to obtain a mortgage and this could result in your Chipping Barnet property becoming difficult to sell or to obtain finance on.

What makes us experts in Chipping Barnet lease extensions?

Engaging our service gives you better control over the value of your Chipping Barnet leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Chipping Barnet Lease Extension Case Summaries:

Jayden, Chipping Barnet, North London,

Jayden was the the leasehold owner of a 2 bedroom flat in Chipping Barnet on the market with a lease of a few days over 72 years outstanding. Jayden informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.

Chipping Barnet case:

Dr W Sharif purchased a first floor apartment in Chipping Barnet in October 2002. The question was if we could estimate the price could be for a 90 year lease extension. Comparative premises in Chipping Barnet with a long lease were valued around £275,000. The average amount of ground rent was £55 invoiced annually. The lease finished in 2103. Given that there were 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.