Why you should start your St Margarets lease extension

Why you should commence your St Margarets lease extension today:

Increase your lease and increase your St Margarets property value

It’s an underpublicised truth that a St Margarets residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the St Margarets property market.Where your lease has approximately 90 years left, you should start considering 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 below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in St Margarets will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

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

Leasehold residencies in St Margarets with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may not finance a property with a short lease

Lenders are inclined not lend on short residential leases. You most probably experience difficulties where you want to sell your flat in St Margarets if the unexpired lease term is less than the criteria set by the majority of banks and building societies. Different lenders have different requirements but generally they are looking for an unexpired term of at least seventy years.

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

The conveyancing solicitors that we work with undertake St Margarets 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.

St Margarets Lease Extension Example Cases:

Poppy, St Margarets, North London,

In the wake of eight months of lengthy negotiations with the freeholder of her leasehold apartment in St Margarets, Poppy initiated the lease extension process as the 80 year deadline was quickly approaching. The lease extension was finalised in May 2010. The landlord’s fees were restricted to about 500 pounds.

St Margarets case:

In 2012 we were approached by Dr Ethan Mason who, having moved into a ground floor flat in St Margarets in November 2005. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative properties in St Margarets with a long lease were valued around £300,000. The mid-range ground rent payable was £50 billed yearly. The lease ended on 14 April 2101. Given that there were 75 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.