Top reasons for Palmers Green lease extension

Why you should start your Palmers Green lease extension today:

Increase your lease and increase your Palmers Green property value

The re-sale value of a leasehold property in Palmers Green depends on how long the lease has remaining. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when a lease still has 82 years to run so that formalities can be addressed in advance of the 80 year mark. Statute enables Palmers Green qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold properties in Palmers Green with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.

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

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are regarded as inadequate for lending purposes.

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

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

Palmers Green Lease Extension Case Summaries:

Caleb, Palmers Green, North London

Half a year ago Caleb, came very close to the 80-year threshold with the lease on his studio flat in Palmers Green. Having bought his home 19 years previously, the unexpired term was of no importance. by good luck, he realised he would imminently be paying an escalated premium for Extending the lease. Caleb extended the lease at the eleventh hour last July. Caleb and the freeholder eventually agreed on an amount of £6,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,025.

Palmers Green case:

In 2012 we were phoned by Dr Ryan Hill who, having bought a newly refurbished flat in Palmers Green in March 2011. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Palmers Green with a long lease were valued about £179,200. The average amount of ground rent was £55 invoiced every twelve months. The lease finished in 2077. Taking into account 51 years left we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.