Main reasons to commence your North London lease extension

Top reasons for lease extension now:

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

The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in North London have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your North London lease extension. Postponing the costs today simply increases the price you will ultimately have to pay for a lease extension.

North London property with a lease extension is almost the same value as a freehold

Leasehold properties in North London with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies will not grant a mortgage with a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. In the past lenders were content with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our North London lease extension solicitors or enfranchisement solicitors

The lawyers that we work with procure North London 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.

North London Lease Extension Case Studies:

Jessica, North London, London,

Trailing unsuccessful negotiations with the landlord of her ground floor flat in North London, Jessica started the lease extension process as the 80 year threshold was rapidly nearing. The legal work was finalised in October 2013. The landlord’s costs were restricted to about 500 GBP.

North London case:

Mr and Mrs. I Norbert acquired a one bedroom apartment in North London in September 2005. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative flats in North London with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed on 3 October 2086. Considering the 62 years outstanding we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus expenses.