Main reasons to start your Maida Vale lease extension

Why you should commence your Maida Vale lease extension today:

A Maida Vale lease depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Maida Vale residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Maida Vale property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Maida Vale will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.

An extended lease is almost the same value as a freehold

It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Mortgage lenders will not lend on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Maida Vale lease extensions?

The lawyers that we work with procure Maida Vale 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.

Maida Vale Lease Extension Case Studies:

Danielle, Maida Vale, London,

Subsequent to unsuccessful discussions with the freeholder of her two bedroom apartment in Maida Vale, Danielle commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The lease extension was concluded in April 2014. The landlord’s fees were kept to an absolute minimum.

Maida Vale case:

In 2014 we were contacted by Ms Kirsty Lee who, having took over the lease of a ground floor flat in Maida Vale in March 1999. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Maida Vale with an extended lease were valued around £191,400. The average ground rent payable was £55 collected per annum. The lease elapsed on 25 February 2080. Given that there were 54 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 plus fees.