Top reasons for Crouch End lease extension

Why you should commence your Crouch End lease extension today:

Increase your lease and increase your Crouch End property value

It’s an underpublicised certainty that a Crouch End residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Crouch End property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term drops below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Crouch End will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.

An extended lease is almost the same value as a freehold

Leasehold premises in Crouch End with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Lenders may decide not to grant a mortgage with a short lease

Banks and building societies are tightening their criteria and many now require flats to have at least sixty if not seventy years remaining at the end of the mortgage. Given that plenty of flats in Crouch End were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to get a mortgage.

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

Using our service gives you enhanced control over the value of your Crouch End 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Crouch End Lease Extension Case Summaries:

Adam, Crouch End, North London

Two years ago Adam, started to get close to the 80-year threshold with the lease on his ground floor flat in Crouch End. Having purchased his property two decades ago, the lease term was of little relevance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Adam was able to extend his lease just under the wire in May. Adam and the freeholder via the managing agents ultimately agreed on sum of £6,000 . If he had missed the deadline, the amount would have increased by a minimum £875.

Crouch End case:

Last Autumn we were approach by Dr Owen Morel , who bought a one bedroom apartment in Crouch End in October 2004. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparable premises in Crouch End with a long lease were valued around £255,000. The average amount of ground rent was £50 billed yearly. The lease lapsed on 5 January 2097. Having 71 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.