Why you should start your Highbury lease extension

Why you should commence your Highbury lease extension today:

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

Highbury leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Highbury will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.

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

Leasehold residencies in Highbury with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lenders will not loan monies with a short lease

Banks and building societies do not like short residential leases. You most probably encounter difficulties if you want to sell your flat in Highbury if the unexpired lease term is under the criteria set by most banks and building societies. Different lenders have different requirements but generally they are looking for a minimum remaining lease term of 65 years.

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

The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.

Highbury Lease Extension Case Studies:

Emily, Highbury, North London,

In the wake of eight months of lengthy correspondence with the landlord of her one bedroom flat in Highbury, Emily started the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The legal work was concluded in April 2013. The freeholder’s fees were negotiated to less than 500 pounds.

Highbury case:

Last Christmas we were e-mailed by Mr V Gray , who took over the lease of a one bedroom apartment in Highbury in June 1999. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical homes in Highbury with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease expiry date was on 4 September 2098. Given that there were 72 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.