Top reasons for Radlett lease extension

Top reasons for lease extension now:

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

The market value of a leasehold property in Radlett depends on how many years the lease has remaining. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that formalities can be finalised ahead of the eighty year cut off point. Leasehold Reform legislation enables Radlett qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.

Lenders may decide not to grant a mortgage with a short lease

Most banks have narrowed their lending criteria in the last ten 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 deemed to be inadequate security.

What makes us experts in Radlett lease extensions?

Regardless of whether you are a tenant or a freeholder in Radlett,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Radlett valuers.

Radlett Lease Extension Example Cases:

Caleb, Radlett, Hertfordshire,

Caleb was the the leasehold proprietor of a high value flat in Radlett on the market with a lease of a little over 72 years outstanding. Caleb on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Caleb to invoke his statutory right. Caleb procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.

Radlett case:

In 2009 we were phoned by Dr Shannon García who, having bought a studio apartment in Radlett in May 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Radlett with an extended lease were in the region of £290,000. The average ground rent payable was £45 collected annually. The lease concluded in 2099. Given that there were 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.