Why you should commence your North London lease extension

Main reasons to start your North London lease extension today:

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

It’s an underpublicised certainty that a North London residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the North London property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. The majority of flat owners in North London will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not loan monies on a short lease

Banks and Building Societies have specific criteria when loaning monies charged on leasehold homes. Some will simply refuse lend at all once an unexpired lease term goes under a certain unexpired lease term. Many Lending institutions will not regard property with a remaining below seventy years suitable security. As well as impacting your ability to sell, it is also relevant where you are intending to refinance your North London property.

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

Lease extensions in North London can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.

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 dealing with North London lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

North London Lease Extension Example Cases:

Harvey, North London, London,

Harvey was the the leasehold proprietor of a conversion flat in North London on the market with a lease of a little over 59 years remaining. Harvey on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.

North London case:

In 2009 we were contacted by Mr and Mrs. E Vincent who, having purchased a basement apartment in North London in April 2008. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in North London with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed per annum. The lease lapsed in 2103. Having 78 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.