Why you should commence your Hendon lease extension

Main reasons to start your Hendon lease extension today:

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

When it comes to long leasehold premises in Hendon, you are actually buying a right to reside in a property for a set period of time. These days 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 rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years remaining. Anyone in Hendon with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years left, under the current Act the freeholder can calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is payable.

Hendon property with a lease extension is almost the same value as a freehold

Leasehold residencies in Hendon with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not issue a mortgage on a short lease

Most banks and building societies will not grant a mortgage on a lease with under seventy years remaining - although this varies between mortgage companies. A buyer will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Hendon property being difficult to dispose of or remortgage.

Why use us for your lease extension in Hendon?

The lawyers that we work with procure Hendon 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 conveyancing solicitor we work with provide it.

Hendon Lease Extension Example Cases:

Lucas, Hendon, North London

Last October Lucas, started to get close to the eighty-year mark with the lease on his ground floor apartment in Hendon. In buying his property 19 years ago, the lease term was of little bearing. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Lucas arranged for a lease extension just under the wire last January. Lucas and the freeholder via the management company eventually settled on sum of £5,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £950.

Hendon case:

In 2012 we were e-mailed by Dr D Lambert who, having purchased a garden flat in Hendon in September 1995. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparable flats in Hendon with a long lease were worth £275,000. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated in 2094. Given that there were 68 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.