Why you should commence your New Barnet lease extension

Top reasons for lease extension now:

Increase your lease and increase your New Barnet property value

New Barnet leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most New Barnet tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in New Barnet you would be well advised to investigate if your lease has between 70 and ninety years left. There are good reasons why a New Barnet flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay

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

It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Lenders will not finance a property with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in New Barnet?

Regardless of whether you are a tenant or a landlord in New Barnet,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Barnet valuers.

New Barnet Lease Extension Case Summaries:

Ali, New Barnet, Hertfordshire,

Ali was the the leasehold owner of a conversion apartment in New Barnet on the market with a lease of a few days over sixty years outstanding. Ali informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

New Barnet case:

Dr K Carter owned a purpose-built apartment in New Barnet in May 1999. The question was if we could approximate the premium could be to prolong the lease by ninety years. Comparable flats in New Barnet with an extended lease were in the region of £173,800. The average amount of ground rent was £60 invoiced annually. The lease came to a finish on 5 January 2081. Considering the 55 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.