Why you should start your Tottenham lease extension

Top reasons for lease extension now:

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

As the length of the unexpired term of a Tottenham domestic lease decreases so does its value and therefore the value of your property. If the residual term has, more than 99 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. Most flat owners in Tottenham will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Tottenham with over 100 years outstanding 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to loan monies on a short lease

Banks and building societies are distinct in their lending criteria. Some draw the line at seventy five years remaining on the lease; others may be happy with anything in excess seventy years. With less than 60 years, it may be impossible to get a mortgage in the first place.

What makes us experts in Tottenham lease extensions?

Engaging our service gives you enhanced control over the value of your Tottenham leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Tottenham Lease Extension Case Studies:

Caitlin, Tottenham, North London,

Subsequent to unsuccessful correspondence with the landlord of her purpose-built flat in Tottenham, Caitlin started the lease extension process as the eighty year threshold was quickly advancing. The transaction completed in September 2012. The landlord’s costs were kept to an absolute minimum.

Tottenham case:

Mr S Rogers took over the lease of a one bedroom flat in Tottenham in November 2005. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical properties in Tottenham with 100 year plus lease were valued around £225,400. The mid-range amount of ground rent was £45 collected every twelve months. The lease finished in 2090. Considering the 64 years outstanding we calculated the premium to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of expenses.