Top reasons for Edgware lease extension

Why you should commence your Edgware lease extension today:

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

When it comes to residential leasehold property in Edgware, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Edgware with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has under eighty years outstanding, under the current statute the freeholder is entitled to calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.

Mortgage lenders may not lend with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past lenders were content with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Using our service will provide you enhanced control over the value of your Edgware 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.

Edgware Lease Extension Example Cases:

Emma, Edgware, North London,

Subsequent to lengthy negotiations with the freeholder of her two bedroom apartment in Edgware, Emma commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The lease extension completed in August 2011. The landlord’s fees were kept to an absolute minimum.

Edgware case:

Last February we were contacted by Dr Aimee Morgan , who moved into a first floor flat in Edgware in August 2008. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparable properties in Edgware with a long lease were valued about £218,000. The average ground rent payable was £45 collected every twelve months. The lease expired on 15 September 2089. Considering the 63 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus costs.