Main reasons to commence your Northolt lease extension

Why you should start your Northolt lease extension today:

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

When it comes to domestic leasehold property in Northolt, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years left. Leasehold owners in Northolt with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has below eighty years remaining, under the relevant statute the freeholder can calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to loan monies with a short lease

Mortgage companies are tightening their criteria and many now expect flats to have a minimum of sixty if not seventy years left once the mortgage has expired. Considering a number of flats in Northolt were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

Why use us for your lease extension in Northolt?

Retaining our service will provide you increased control over the value of your Northolt leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Northolt Lease Extension Case Studies:

Ollie, Northolt, West London

14 months ago Ollie, came dangerously near to the 80-year threshold with the lease on his garden flat in Northolt. Having purchased his flat 19 years ago, the length of the lease was of minimal interest. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Ollie was able to extend his lease just under the wire last September. Ollie and the freeholder subsequently settled on an amount of £5,500 . If the lease had descended to less than 80 years, the sum would have increased by a minimum £1,075.

Northolt case:

In 2014 we were phoned by Ms Y Cox who, having owned a purpose-built flat in Northolt in January 1999. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Northolt with an extended lease were worth £254,200. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed on 3 February 2077. Considering the 51 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus fees.