Top reasons for Highbury lease extension

Top reasons for lease extension now:

Increase your lease and increase your Highbury property value

Highbury leases on domestic properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Highbury will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.

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

Leasehold residencies in Highbury with over 100 years unexpired on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and service charges justify it.

Lending institutions may decide not to lend on a short lease

Lending institutions have specific criteria when lending funds secured on leasehold homes. Some will simply refuse lend at all once the residual lease term drops beneath a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than 75 years suitable security. As well as impacting your ability to sell, it is also relevant if you are wanting to refinance your Highbury home.

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

The conveyancing solicitors that we work with handle Highbury 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 conveyancer we work with provide it.

Highbury Lease Extension Example Cases:

Rebecca, Highbury, North London,

In the wake of eight months of unsuccessful discussions with the landlord of her first floor apartment in Highbury, Rebecca started the lease extension process just as her lease was approaching the all-important 80-year deadline. The legal work was finalised in June 2006. The landlord’s fees were kept to an absolute minimum.

Highbury case:

In 2012 we were phoned by Dr Michael Ramírez who, having purchased a purpose-built apartment in Highbury in July 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative residencies in Highbury with a long lease were in the region of £176,200. The average amount of ground rent was £65 billed quarterly. The lease ran out in 2082. Considering the 56 years remaining we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus legals.