Main reasons to commence your Northolt lease extension

Top reasons for lease extension now:

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

When it comes to residential leasehold property in Northolt, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years remaining. Anyone in Northolt with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under eighty years outstanding, under the current Act the freeholder can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.

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

Leasehold properties in Northolt with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not issue a mortgage with a short lease

Most mortgage lenders have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are considered to be insufficient for lending purposes.

What makes us experts in Northolt lease extensions?

Lease extensions in Northolt can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Northolt lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Northolt Lease Extension Case Summaries:

Mason, Northolt, West London

Half a year ago Mason, started to get close to the 80-year threshold with the lease on his ground floor apartment in Northolt. Having bought his flat 18 years previously, the unexpired term was of no bearing. As luck would have it, he realised he would imminently be paying an escalated premium for a lease extension. Mason was able to extend his lease just under the wire last August. Mason and the freeholder via the managing agents eventually agreed on a premium of £5,500 . If he failed to meet the deadline, the price would have gone up by a minimum £1,025.

Northolt case:

Last month we were called by Dr U Collins , who owned a purpose-built apartment in Northolt in November 2005. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical properties in Northolt with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease came to a finish in 2104. Considering the 78 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.