Main reasons to 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.

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 first few years due to the loss of value being disguised by increases in the North London property market.Where your lease has approximately ninety 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 slips lower than 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in North London will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.

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

Leasehold residencies in North London with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions will not finance a property with a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by banks has increased. Historically lenders were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in North London?

Using 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 relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

North London Lease Extension Example Cases:

Jacob, North London, London,

Jacob owned a conversion flat in North London being sold with a lease of a few days over 59 years unexpired. Jacob on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

North London case:

In 2012 we were phoned by Dr Rebecca González who, having owned a studio apartment in North London in May 2006. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Similar residencies in North London with a long lease were worth £290,000. The average amount of ground rent was £45 invoiced yearly. The lease elapsed in 2099. Given that there were 73 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.