Why you should commence your Hendon lease extension

Why you should start your Hendon lease extension today:

Increase your lease and increase your Hendon property value

The re-sale value of a leasehold property in Hendon is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the 80 year threshold. Leasehold Reform legislation enables Hendon qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold residencies in Hendon with more than one hundred years remaining 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 upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may decide not to lend on a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now want flats to have a minimum of sixty if not seventy years remaining at the expiry of the mortgage. Considering a number of flats in Hendon were built in the fifties, sixties and seventies as a result many now need to be extended if they if they are to be mortgageable.

What makes us experts in Hendon lease extensions?

The lawyers that we work with undertake 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:

Ashleigh, Hendon, North London,

Trailing lengthy discussions with the freeholder of her garden flat in Hendon, Ashleigh initiated the lease extension process as the 80 year mark was quickly nearing. The lease extension completed in May 2014. The landlord’s costs were kept to an absolute minimum.

Hendon case:

In 2011 we were called by Mrs I Peterson who, having owned a one bedroom flat in Hendon in February 2000. The question was if we could approximate the price could be to extend the lease by a further 90 years. Similar properties in Hendon with 100 year plus lease were valued about £250,400. The average ground rent payable was £65 billed monthly. The lease ended in 2090. Given that there were 64 years unexpired we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of costs.