Why you should start your Edmonton lease extension

Main reasons to commence your Edmonton lease extension today:

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

Edmonton leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Edmonton will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Edmonton with over 100 years remaining 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Lenders may not issue a mortgage with a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

The conveyancing solicitors that we work with procure Edmonton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Edmonton Lease Extension Case Summaries:

Leon, Edmonton, North London

In recent months Leon, started to get close to the 80-year threshold with the lease on his leasehold apartment in Edmonton. In buying his flat two decades ago, the unexpired term was of little bearing. As luck would have it, he became aware that he would soon be paying an inflated amount for Extending the lease. Leon arranged for a lease extension just under the wire in May. Leon and the landlord ultimately settled on the final figure of £5,000 . If the lease had slipped below eighty years, the premium would have increased by at least £1,025.

Edmonton case:

Dr S Bailey purchased a first floor flat in Edmonton in March 2007. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar properties in Edmonton with an extended lease were worth £235,200. The average ground rent payable was £45 billed every twelve months. The lease lapsed in 2092. Having 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.