Main reasons to commence your Finchley lease extension

Why you should commence your Finchley lease extension today:

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

With a domestic leasehold premises in Finchley, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Finchley with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has below 80 years remaining, under the current legislation the landlord can calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

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

Lending institutions may not finance a property with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to get jittery at around 75 years. This will cause difficulties as and when you come to sell or refinance your flat as it will be effectively unmortgageable. You might not have an imminent plan to sell but when you do your purchaser must hold off for two years before being able to initiate the legal procedures for a lease extension.

Why use us for your lease extension in Finchley?

Regardless of whether you are a tenant or a landlord in Finchley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Finchley valuers.

Finchley Lease Extension Case Studies:

Ibrahim, Finchley, North London

During the course of the last few months Ibrahim, started to get near to the eighty-year mark with the lease on his basement apartment in Finchley. In buying his property 18 years ago, the length of the lease was of no relevance. Thankfully, he noticed he needed to take steps soon on Extending the lease. Ibrahim extended the lease just under the wire last March. Ibrahim and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If he had missed the deadline, the price would have gone up by a minimum £1,150.

Finchley case:

In 2011 we were contacted by Mr and Mrs. N Vincent who, having acquired a ground floor flat in Finchley in February 1998. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Finchley with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced annually. The lease terminated on 7 October 2097. Considering the 71 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.