Main reasons to commence your Neasden lease extension

Why you should start your Neasden lease extension today:

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

Neasden leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Neasden will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.

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

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent 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 grant a mortgage with a short lease

Banks and Building Societies have set criteria when loaning monies charged on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term goes below a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant if you are intending to remortgage your Neasden property.

What makes us experts in Neasden lease extensions?

The conveyancers that we work with handle Neasden 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.

Neasden Lease Extension Case Summaries:

Leo, Neasden, North West London

18 months ago Leo, started to get near to the 80-year threshold with the lease on his garden apartment in Neasden. In buying his home two decades ago, the length of the lease was of no concern. by good luck, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Leo arranged for a lease extension at the eleventh hour in March. Leo and the freeholder via the management company in the end settled on sum of £5,000 . If the lease had descended to less than eighty years, the figure would have gone up by at least £850.

Neasden case:

Last Winter we were phoned by Mrs S Martínez , who completed a one bedroom apartment in Neasden in March 2009. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Neasden with a long lease were valued around £255,000. The average amount of ground rent was £50 billed yearly. The lease elapsed in 2097. Having 71 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.