Top reasons for Maida Vale lease extension

Main reasons to commence your Maida Vale lease extension today:

Increase your lease and increase your Maida Vale property value

Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Maida Vale. Clearly, the period of lease remaining shortens over time. This is often ignored and only becomes a problem when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Maida Vale have the legal entitlement to extend the lease for a further 90 years under legislation. You should give careful consideration before delaying your Maida Vale lease extension. Putting off that expense now simply increases the price you will ultimately incur for a lease extension

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

It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Lenders may not finance a property on a short lease

The trend since the credit crunch 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 meant the unexpired lease term required by mortgage companies has increased. Historically banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

Irrespective of whether you are a tenant or a freeholder in Maida Vale,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 Maida Vale valuers.

Maida Vale Lease Extension Example Cases:

Luke, Maida Vale, London

In 2014 Luke, started to get close to the 80-year threshold with the lease on his first floor flat in Maida Vale. Having bought his property 19 years ago, the unexpired term was of minimal bearing. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Luke extended the lease just in the nick of time last May. Luke and the freeholder in the end settled on an amount of £5,500 . If he had missed the deadline, the price would have escalated by at least £850.

Maida Vale case:

Last month we were approach by Mr and Mrs. Y Lefèvre , who was assigned a lease of a one bedroom apartment in Maida Vale in May 1997. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative flats in Maida Vale with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £45 billed per annum. The lease expired on 27 November 2100. Taking into account 75 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.