Why you should start your East Barnet lease extension

Main reasons to start your East Barnet lease extension today:

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

With a residential leasehold property in East Barnet, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Residents in East Barnet with a lease approaching 81 years left should seriously think of extending it sooner rather than later. When the lease term has below 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold residencies in East Barnet with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may decide not to grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to become jittery at around 75 years. This may be problematic as and when you come to dispose of or remortgage your flat as it will be practically unmortgageable. Even though you might have no immediate plan to sell but when you do your buyer will have to hold off for 2 years before being able to start the legal procedures for a lease extension.

What makes us experts in East Barnet lease extensions?

Irrespective of whether you are a tenant or a landlord in East Barnet,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East Barnet valuers.

East Barnet Lease Extension Case Studies:

Louise, East Barnet, North London,

Trailing unsuccessful discussions with the freeholder of her purpose-built flat in East Barnet, Louise commenced the lease extension process as the 80 year mark was fast coming. The lease extension was finalised in July 2009. The landlord’s fees were kept to an absolute minimum.

East Barnet case:

Ms I Fournier bought a studio flat in East Barnet in June 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in East Barnet with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected yearly. The lease terminated on 12 October 2082. Taking into account 56 years unexpired we estimated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of costs.