Why you should start your North Wembley lease extension

Main reasons to commence your North Wembley lease extension today:

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

Unfortunately that a North Wembley residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the North Wembley property market.Once your lease nears 85ish years, you should start considering 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 under eighty years - otherwise a higher amount will be due. The majority of flat owners in North Wembley will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.

An extended lease is almost the same value as a freehold

Leasehold residencies in North Wembley with more than one hundred years left on the lease are often regarded as a ‘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 freehold unless savings on ground rent and maintenance charges justify it.

Lenders may not grant a mortgage on a short lease

Banks and building societies are really clamping down as regards to properties in North Wembley with short leases. For instance you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus restricting your market.

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

The lawyers that we work with handle North Wembley 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 Wembley Lease Extension Example Cases:

Ali, North Wembley, North London,

Ali was the the leasehold owner of a high value apartment in North Wembley on the market with a lease of just over 61 years outstanding. Ali on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali obtained expert advice and secured satisfactory deal informally and sell the flat.

North Wembley case:

Mr and Mrs. A Phillips bought a first floor flat in North Wembley in June 1999. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparable properties in North Wembley with 100 year plus lease were valued around £237,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease expiry date was in 2093. Given that there were 67 years left we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus professional charges.