Top reasons for Northwood lease extension

Why you should start your Northwood lease extension today:

Increase your lease and increase your Northwood property value

The market value of a leasehold property in Northwood depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is ideal to start the lease extension process when a lease still has 82 years remaining so that a lease extension can be concluded well before the 80 year threshold. Current legislation enables Northwood qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold residencies in Northwood with in excess of one hundred years remaining 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to lend on a short lease

The propensity since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. In the past banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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 lawyer we work with provide it.

Northwood Lease Extension Example Cases:

Riley, Northwood, West London

Two years ago Riley, came very near to the eighty-year threshold with the lease on his basement flat in Northwood. In buying his flat 18 years ago, the length of the lease was of minimal interest. Thankfully, he realised he needed to take action soon on Extending the lease. Riley arranged for a lease extension just under the wire last July. Riley and the landlord who owned the flat above eventually settled on sum of £5,000 . If he had missed the deadline, the amount would have increased by at least £850.

Northwood case:

Mrs Alexandra Martin acquired a purpose-built flat in Northwood in January 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Northwood with an extended lease were worth £205,000. The average ground rent payable was £50 billed annually. The lease termination date was on 25 April 2105. Taking into account 79 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.