Why you should commence your Northfleet lease extension

Top reasons for lease extension now:

Increase your lease and increase your Northfleet property value

The market value of a leasehold property in Northfleet is impacted by how long the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded prior to the eighty year threshold. Current legislation enables Northfleet qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

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

Mortgage companies are tightening their criteria and many now expect flats to have at least sixty if not seventy years left once the mortgage has expired. As plenty of flats in Northfleet were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

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

Engaging our service gives you enhanced control over the value of your Northfleet leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Northfleet Lease Extension Example Cases:

Melissa, Northfleet, Kent,

Trailing protracted negotiations with the freeholder of her garden flat in Northfleet, Melissa started the lease extension process as the eighty year mark was quickly advancing. The legal work completed in April 2007. The landlord’s costs were negotiated to a tad over six hundred GBP.

Northfleet case:

Mr Rory Stewart took over the lease of a studio flat in Northfleet in February 2011. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar premises in Northfleet with a long lease were worth £280,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ran out in 2096. Considering the 70 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.

Northfleet case:

Last month we were approach by Mr Harry Bennett , who purchased a basement flat in Northfleet in June 1998. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical residencies in Northfleet with an extended lease were worth £223,400. The mid-range amount of ground rent was £60 collected annually. The lease came to a finish in 2085. Having 59 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of costs.