Main reasons to start your Hendon lease extension

Top reasons for lease extension now:

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

Unfortunately that a Hendon residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Hendon property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Hendon will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

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

Leasehold residencies in Hendon with in excess of 100 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Lenders may decide not to grant a mortgage with a short lease

Banks and building societies do not grant a mortgage on short residential leases. You are likely to experience problems if you need to sell your flat in Hendon if the remaining term of your lease is below the criteria set by most banks and building societies. Different mortgage companies have varying criteria but on the whole they are looking for an unexpired term of at least 65 years.

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

The conveyancing solicitors 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 Case Summaries:

Amelia, Hendon, North London,

Off the back of protracted negotiations with the landlord of her two bedroom apartment in Hendon, Amelia commenced the lease extension process just as the lease was coming close to the critical 80-year threshold. The legal work was finalised in June 2015. The landlord’s fees were negotiated to below 550 pounds.

Hendon case:

Last Autumn we were contacted by Dr E Edwards , who took over the lease of a ground floor flat in Hendon in June 2006. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Comparable premises in Hendon with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 collected annually. The lease termination date was in 2098. Having 72 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.