Top reasons for Northolt lease extension

Top reasons for lease extension now:

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

Northolt leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Northolt tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Northolt you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

Northolt property with a lease extension is almost the same value as a freehold

Leasehold premises in Northolt with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Lending institutions will not lend with a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to become nervous at around 75 years. This will cause difficulties once you come to dispose of or refinance your property as it will be practically unmortgageable. Even though you may not have an immediate desire to sell but when you do your purchaser will have to wait a couple of years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in Northolt?

The lawyers that we work with procure Northolt 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.

Northolt Lease Extension Case Summaries:

Sophie, Northolt, West London,

Subsequent to unsuccessful negotiations with the freeholder of her leasehold apartment in Northolt, Sophie started the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction was concluded in March 2009. The freeholder’s charges were negotiated to below 450 pounds.

Northolt case:

Last Christmas we were e-mailed by Dr A Lefèvre , who took over the lease of a newly refurbished flat in Northolt in January 1998. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparative residencies in Northolt with 100 year plus lease were worth £227,800. The mid-range amount of ground rent was £45 collected annually. The lease end date was in 2090. Taking into account 65 years unexpired we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.