Why you should commence your North London lease extension

Why you should start your North London lease extension today:

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

When it comes to domestic leasehold premises in North London, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years left. Anyone in North London with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has under 80 years remaining, under the current legislation the freeholder can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.

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

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not grant a mortgage with a short lease

Most mortgage companies will be unwilling to grant a mortgage on a lease with less than 70 years unexpired - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your North London property becoming difficult to sell or to obtain finance on.

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

The conveyancers that we work with undertake 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 Summaries:

Nathan, North London, London

In recent months Nathan, started to get near to the 80-year threshold with the lease on his ground floor apartment in North London. In buying his home two decades ago, the lease term was of no significance. Fortunately, he noticed he needed to take steps soon on a lease extension. Nathan extended the lease just under the wire in September. Nathan and the freeholder via the management company subsequently settled on sum of £6,000 . If he not met the deadline, the sum would have escalated by a minimum £950.

North London case:

Last year we were contacted by Ms B Kelly , who was assigned a lease of a purpose-built flat in North London in January 2010. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar homes in North London with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 billed quarterly. The lease ran out in 2098. Taking into account 72 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.