Top reasons for Muswell Hill lease extension

Main reasons to commence your Muswell Hill lease extension today:

Increase your lease and increase your Muswell Hill property value

It’s a harsh truth that a Muswell Hill residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Muswell Hill property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining falls below 80 years, you will end up paying half 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 extra value that a lease extension will add the property Most leasehold owners in Muswell Hill will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.

An extended lease is almost the same value as a freehold

Leasehold properties in Muswell Hill with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not issue a mortgage with a short lease

The trend since over the last decade has been for banks to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Engaging our service will provide you increased control over the value of your Muswell Hill leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Muswell Hill Lease Extension Case Summaries:

Evan, Muswell Hill, North London

Last October Evan, started to get near to the eighty-year mark with the lease on his ground floor flat in Muswell Hill. Having bought his home 19 years ago, the length of the lease was of no bearing. As luck would have it, he recognised he needed to take action soon on Extending the lease. Evan arranged for a lease extension at the eleventh hour last August. Evan and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had gone lower than 80 years, the price would have increased by a minimum £900.

Muswell Hill case:

Dr W Roux owned a purpose-built flat in Muswell Hill in July 2006. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Muswell Hill with an extended lease were valued about £264,000. The mid-range ground rent payable was £60 billed monthly. The lease concluded in 2079. Considering the 53 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including professional charges.