Top reasons for Highgate lease extension

Top reasons for lease extension now:

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

It’s a harsh truth that a Highgate residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Highgate property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips below eighty years, you will end up paying 50% 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 Highgate will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.

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

Leasehold properties in Highgate with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not grant a mortgage on a short lease

Lenders will not lend on short residential leases. You most probably experience problems where you want to sell your flat in Highgate if the remaining term of your lease is less than the criteria set by the majority of banks and building societies. Different lenders have varying requirements but generally theyrequire an unexpired term of at least 65 years.

Why use us for your lease extension in Highgate?

The conveyancing solicitors that we work with undertake Highgate 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.

Highgate Lease Extension Case Summaries:

Abigail, Highgate, North London,

Following lengthy correspondence with the freeholder of her garden flat in Highgate, Abigail started the lease extension process just as her lease was nearing the all-important 80-year mark. The legal work was finalised in September 2012. The freeholder’s charges were kept to an absolute minimum.

Highgate case:

Last Winter we were phoned by Dr Toby Brown , who purchased a studio flat in Highgate in October 1996. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Highgate with a long lease were in the region of £200,800. The average ground rent payable was £65 billed yearly. The lease ended in 2085. Taking into account 60 years left we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of legals.