Main reasons to start your East Finchley lease extension

Why you should commence your East Finchley lease extension today:

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

Unfortunately that a East Finchley residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the East Finchley property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term falls 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. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in East Finchley will be able to extend under the legislation; however a conveyancer should be able to confirm if 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 has commenced 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 properties in East Finchley with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders may decide not to grant a mortgage on a short lease

Mortgage companies do not grant a mortgage on short residential leases. You are likely to encounter difficulties where you wish to sell your flat in East Finchley if the remaining lease term is less than the criteria set by most lenders. Different mortgage companies have different criteria but in the main theyrequire a minimum remaining lease term of 65 years.

What makes us experts in East Finchley lease extensions?

Engaging our service will provide you better control over the value of your East Finchley leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

East Finchley Lease Extension Example Cases:

Matthew, East Finchley, North London

In 2014 Matthew, started to get close to the eighty-year threshold with the lease on his leasehold flat in East Finchley. Having bought his property 19 years previously, the length of the lease was of minimal bearing. by good luck, he became aware that he needed to take action soon on a lease extension. Matthew was able to extend his lease just ahead of time in April. Matthew and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had slid lower than 80 years, the price would have gone up by a minimum £1,150.

East Finchley case:

In 2011 we were contacted by Mr Y Bell who, having took over the lease of a one bedroom apartment in East Finchley in March 2009. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical flats in East Finchley with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 billed monthly. The lease ended on 24 April 2082. Considering the 56 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 plus legals.