Why you should start your Edgware lease extension

Top reasons for lease extension now:

Increase your lease and increase your Edgware property value

When it comes to domestic leasehold property in Edgware, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than 80 years left. Leasehold owners in Edgware with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years remaining, under the relevant legislation the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.

Edgware property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Edgware with over 100 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Banks and building societies do not like short residential leases. You most probably experience problems if you want to sell your flat in Edgware if the unexpired lease term is less than the criteria set by the majority of lenders. Different mortgage companies have different criteria but in the main they are looking for a minimum remaining lease term of 65 years.

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

Engaging our service will provide you increased control over the value of your Edgware leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Edgware Lease Extension Example Cases:

Oscar, Edgware, North London

Last year Oscar, started to get close to the 80-year mark with the lease on his purpose- built apartment in Edgware. Having purchased his home twenty years previously, the length of the lease was of no bearing. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Oscar arranged for a lease extension just under the wire last July. Oscar and the freeholder in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,100.

Edgware case:

In 2014 we were called by Mr and Mrs. E Bonnet who, having owned a ground floor apartment in Edgware in November 2011. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Similar homes in Edgware with 100 year plus lease were valued about £168,800. The average ground rent payable was £60 billed quarterly. The lease elapsed in 2081. Taking into account 55 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus professional charges.