Main reasons to commence your Highbury lease extension

Main reasons to commence your Highbury lease extension today:

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

With a domestic leasehold property in Highbury, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Anyone in Highbury with a lease nearing 81 years remaining should seriously consider extending it without delay. Once a lease has under eighty years left, under the current statute the freeholder is entitled to calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold properties in Highbury with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not grant a mortgage on a short lease

Almost all banks and building societies insist on a lengthy amount of time remaining on any leasehold property before they will consider it as adequate security. Regardless of whether you need a mortgage, you should be mindful that it is probable that someone wishing to acquire your property in the future might well do, so if they can't secure a mortgage, then the financial worth of your property could suffer. Since 2008 many banks and building societies have increased the required minimum lease length that they are willing to accept

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

Regardless of whether you are a tenant or a freeholder in Highbury,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Highbury valuers.

Highbury Lease Extension Case Studies:

Edward, Highbury, North London

In recent months Edward, came perilously near to the 80-year threshold with the lease on his studio flat in Highbury. Having purchased his property twenty years previously, the lease term was of little importance. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Edward was able to extend his lease just ahead of time last March. Edward and the landlord who owned the flat above eventually settled on an amount of £6,000 . If the lease had dropped lower than eighty years, the sum would have increased by a minimum £1,150.

Highbury case:

Mr and Mrs. Y Phillips purchased a garden apartment in Highbury in May 1995. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Identical residencies in Highbury with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 billed yearly. The lease terminated on 6 October 2084. Given that there were 59 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including costs.