Why you should commence your North London lease extension

Why you should commence your North London lease extension today:

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

There is no doubt about it a leasehold flat or house in North London is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner than later. The majority of flat owners in North London will qualify for this right; nevertheless a lawyer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in North London with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Banks and Building Societies may not grant a mortgage on a short lease

What makes us experts in North London lease extensions?

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 conveyancer we work with provide it.

North London Lease Extension Example Cases:

Reuben, North London, London,

Reuben was the the leasehold owner of a high value flat in North London being marketed with a lease of a few days over 72 years left. Reuben informally spoke with his landlord a well known London-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 subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Reuben to exercise his statutory right. Reuben procured expert legal guidance and secured an acceptable resolution informally and readily saleable.

North London case:

In 2010 we were e-mailed by Mr Ben Scott who, having purchased a studio apartment in North London in May 1999. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar residencies in North London with 100 year plus lease were valued around £191,400. The mid-range ground rent payable was £55 collected per annum. The lease termination date was in 2080. Having 54 years unexpired we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus legals.