Why you should commence your Northfleet lease extension

Top reasons for lease extension now:

A Northfleet leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Northfleet depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded prior to the 80 year cut off point. Current legislation enables Northfleet qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.

Lending institutions will not loan monies on a short lease

The propensity since 2008 has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

The conveyancers that we work with handle Northfleet 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.

Northfleet Lease Extension Example Cases:

Kai, Northfleet, Kent,

Kai was the the leasehold owner of a studio apartment in Northfleet being marketed with a lease of fraction over 59 years outstanding. Kai on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Kai to invoke his statutory right. Kai procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.

Northfleet case:

In 2012 we were contacted by Mr and Mrs. W Alexander who, having completed a basement apartment in Northfleet in October 2004. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Identical residencies in Northfleet with a long lease were valued about £216,000. The mid-range ground rent payable was £60 billed annually. The lease terminated on 4 September 2084. Given that there were 58 years unexpired we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus expenses.

Northfleet case:

Mr Riley Adams was assigned a lease of a purpose-built flat in Northfleet in February 2000. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Northfleet with 100 year plus lease were valued around £205,000. The average ground rent payable was £50 billed yearly. The lease finished in 2104. Considering the 78 years remaining we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.