Top reasons for Cricklewood lease extension

Top reasons for lease extension now:

A Cricklewood leasehold property depreciates with the years remaining on the lease.

When it comes to long leasehold premises in Cricklewood, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long 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 particularly once there are fewer than eighty years left. Anyone in Cricklewood with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. Once the lease term has less than eighty years left, under the relevant legislation the freeholder can calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.

Cricklewood property with a lease extension is almost the same value as a freehold

Leasehold residencies in Cricklewood with over 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to finance a property with a short lease

Mortgage companies are making their criteria more stringent and many now expect flats to have a minimum of sixty if not seventy years left at the end of the mortgage. As plenty of flats in Cricklewood were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

Why use us for your lease extension in Cricklewood?

Regardless of whether you are a tenant or a landlord in Cricklewood,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 Cricklewood valuers.

Cricklewood Lease Extension Case Studies:

Nathaniel, Cricklewood, North West London,

Nathaniel was the the leasehold owner of a high value flat in Cricklewood being sold with a lease of fraction over 72 years outstanding. Nathaniel on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Cricklewood case:

In 2013 we were e-mailed by Mr Seth Sharif who, having bought a one bedroom apartment in Cricklewood in January 2005. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative homes in Cricklewood with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected annually. The lease expired in 2082. Given that there were 56 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including costs.