Main reasons to commence your Northwood lease extension

Top reasons for lease extension now:

Increase your lease and increase your Northwood property value

It’s an underpublicised truth that a Northwood residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Northwood property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Northwood will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.

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

Leasehold premises in Northwood with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

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

Nearly all mortgage companies insist on a lengthy amount of time left on a leasehold property before they will consider providing a mortgage on it. Regardless of whether you need a mortgage, you should be aware that it is likely that someone wishing to purchase your property in the future might well do, so where they are unable to secure a mortgage, then the value of the property will likely suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to lend on

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

Retaining our service will provide you increased control over the value of your Northwood leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Northwood Lease Extension Example Cases:

Elijah, Northwood, West London

Half a year ago Elijah, came critically close to the 80-year mark with the lease on his leasehold flat in Northwood. In buying his flat two decades ago, the unexpired term was of minimal interest. Fortunately, he recognised he needed to take action soon on Extending the lease. Elijah arranged for a lease extension just under the wire last March. Elijah and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If he failed to meet the deadline, the amount would have increased by a minimum £1,100.

Northwood case:

In 2011 we were e-mailed by Mr and Mrs. W Fournier who, having moved into a newly refurbished flat in Northwood in May 1999. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical properties in Northwood with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 invoiced yearly. The lease came to a finish in 2097. Having 71 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.