Why you should commence your Neasden lease extension

Why you should start your Neasden lease extension today:

A Neasden leasehold property depreciates with the years remaining on the lease.

Neasden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Neasden residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Neasden you must check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

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

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions may not issue a mortgage with a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically mortgage companies were content with twenty 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 Neasden lease extension solicitors or enfranchisement solicitors

Lease extensions in Neasden can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Neasden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Neasden Lease Extension Case Summaries:

Benjamin, Neasden, North West London

During the course of the last few months Benjamin, came dangerously near to the 80-year threshold with the lease on his studio apartment in Neasden. Having purchased his property two decades ago, the unexpired term was of no interest. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Benjamin arranged for a lease extension at the eleventh hour last June. Benjamin and the freeholder in the end agreed on an amount of £5,500 . If he failed to meet the deadline, the amount would have increased by at least £925.

Neasden case:

Mr and Mrs. Y Morel acquired a recently refurbished apartment in Neasden in March 1998. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Identical flats in Neasden with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 collected annually. The lease concluded on 4 February 2083. Considering the 57 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.