Why you should start your Northwood lease extension

Top reasons for lease extension now:

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

With a residential leasehold premises in Northwood, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Leasehold owners in Northwood with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has less than eighty years left, under the current Act the freeholder can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.

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

It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.

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

Most mortgage lenders have narrowed 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 below seventy years as they are regarded as insufficient security.

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

The conveyancers that we work with procure Northwood 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.

Northwood Lease Extension Case Studies:

Reuben, Northwood, West London,

Reuben owned a 2 bedroom apartment in Northwood on the market with a lease of just over 61 years outstanding. Reuben on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.

Northwood case:

Mr and Mrs. K Girard bought a recently refurbished apartment in Northwood in March 2001. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Northwood with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 invoiced quarterly. The lease finished in 2081. Considering the 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.