Why you should commence your Pinner lease extension

Why you should start your Pinner lease extension today:

Increase your lease and increase your Pinner property value

It’s an underpublicised truth that a Pinner residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Pinner property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Pinner will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Pinner with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may decide not to lend with a short lease

Lending institutions have specific criteria when loaning funds charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term drops beneath a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than 75 years as acceptable security. In addition to this being important when selling, it is also relevant where you are intending to refinance your Pinner home.

What makes us experts in Pinner lease extensions?

The conveyancing solicitors that we work with procure Pinner 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 conveyancing solicitor we work with provide it.

Pinner Lease Extension Case Summaries:

Harvey, Pinner, North London

In recent months Harvey, came seriously near to the eighty-year threshold with the lease on his one bedroom apartment in Pinner. Having bought his home twenty years ago, the length of the lease was of minimal significance. Luckily, he recognised he needed to take steps soon on Extending the lease. Harvey was able to extend his lease just in the nick of time last July. Harvey and the freeholder via the managing agents subsequently agreed on an amount of £6,000 . If the lease had slid below 80 years, the sum would have become more exhorbitant by at least £900.

Pinner case:

Ms Isabella Carter took over the lease of a one bedroom flat in Pinner in May 2000. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparative homes in Pinner with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish on 9 September 2089. Taking into account 63 years left we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 not including fees.