Why you should commence your Finchley lease extension

Top reasons for lease extension now:

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

The value of Finchley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is below than 80 years

An extended lease is almost the same value as a freehold

Leasehold properties in Finchley with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders may not loan monies on a short lease

Mortgage companies are really restricting their approach as regards to properties in Finchley with short leases. For instance you might discover that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your only options would be to find a cash buyer, or hope for the best at auction thus narrowing the amount of prospective purchasers.

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

Engaging our service gives you better control over the value of your Finchley 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.

Finchley Lease Extension Example Cases:

Alex, Finchley, North London

In 2014 Alex, started to get close to the 80-year threshold with the lease on his garden apartment in Finchley. In buying his flat two decades ago, the lease term was of minimal interest. by good luck, it dawned on him that he needed to take action soon on a lease extension. Alex was able to extend his lease just under the wire in August. Alex and the freeholder ultimately agreed on an amount of £5,000 . If the lease had gone below 80 years, the amount would have become more exhorbitant by a minimum £875.

Finchley case:

In 2012 we were e-mailed by Mr and Mrs. L Hall who, having owned a studio apartment in Finchley in May 2005. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative homes in Finchley with an extended lease were valued around £223,400. The average ground rent payable was £60 billed per annum. The lease finished in 2085. Having 59 years remaining we approximated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 not including costs.