Main reasons to commence your North London lease extension

Main reasons to commence your North London lease extension today:

A North London leasehold property depreciates with the years remaining on the lease.

The value of North London leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold properties in North London with in excess of one hundred years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not grant a mortgage on a short lease

Lenders do not like short residential leases. You are likely to experience difficulties if you want to sell your flat in North London if the remaining lease term is below the criteria set by the majority of mortgage companies. Different mortgage companies have varying requirements but on the whole theyrequire a minimum remaining lease term of seventy years.

What makes us experts in North London lease extensions?

Regardless of whether you are a tenant or a landlord in North London,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with North London valuers.

North London Lease Extension Example Cases:

Matthew, North London, London,

Matthew owned a studio apartment in North London on the market with a lease of fraction over 61 years left. Matthew informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.

North London case:

In 2010 we were called by Mr D Hernández who, having purchased a studio flat in North London in January 2012. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar properties in North London with 100 year plus lease were worth £243,000. The mid-range amount of ground rent was £65 billed per annum. The lease finished in 2088. Taking into account 63 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of expenses.