Main reasons to commence your New Barnet lease extension

Why you should commence your New Barnet lease extension today:

A New Barnet leasehold property depreciates with the years remaining on the lease.

With a domestic leasehold property in New Barnet, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than eighty years left. Residents in New Barnet with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below eighty years outstanding, under the current legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.

New Barnet property with a lease extension is almost the same value as a freehold

Leasehold properties in New Barnet with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to issue a mortgage with a short lease

Most banks and building societies will be unwilling to lend on a lease with under seventy years unexpired - although this varies between mortgage companies. A purchaser will no doubt encounter difficulties to obtain a mortgage and this will result in your New Barnet property being difficult to dispose of or refinance.

Why use us for your lease extension in New Barnet?

Lease extensions in New Barnet can be a difficult process. We recommend you obtain 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 procuring New Barnet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

New Barnet Lease Extension Case Studies:

Ali, New Barnet, Hertfordshire

Half a year ago Ali, came seriously near to the 80-year mark with the lease on his leasehold flat in New Barnet. Having purchased his property 19 years ago, the lease term was of no concern. by good luck, he noticed he needed to take action soon on a lease extension. Ali arranged for a lease extension just ahead of time last April. Ali and the landlord ultimately settled on sum of £5,000 . If the lease had fallen lower than eighty years, the premium would have increased by at least £850.

New Barnet case:

Mr Michael Taylor moved into a purpose-built apartment in New Barnet in May 2011. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Similar homes in New Barnet with 100 year plus lease were worth £193,400. The mid-range amount of ground rent was £65 invoiced per annum. The lease ran out on 15 October 2085. Having 59 years outstanding we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus fees.