Why you should commence your North London lease extension

Top reasons for lease extension now:

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

North London leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most North London tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in North London you really ought to check if your lease has between seventy and ninety years left. There are compelling reasons why a North London flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay

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

Leasehold premises in North London with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may decide not to grant a mortgage on a short lease

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

Engaging our service will provide you increased control over the value of your North London leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

North London Lease Extension Case Studies:

Sebastian, North London, London,

Sebastian was the the leasehold owner of a conversion flat in North London on the market with a lease of just over 59 years unexpired. Sebastian on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.

North London case:

Last year we were contacted by Mr Max Pérez , who completed a one bedroom flat in North London in November 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in North London with 100 year plus lease were valued around £252,800. The average ground rent payable was £65 billed yearly. The lease ended in 2091. Taking into account 65 years left we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus fees.