Why you should start your West Hampstead lease extension

Top reasons for lease extension now:

A West Hampstead lease depreciates with the years remaining on the lease.

West Hampstead leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most West Hampstead tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in West Hampstead you would be well advised to see if your lease has between seventy and ninety years left. There are compelling reasons why a West Hampstead leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is put in place without delay

West Hampstead property with a lease extension has roughly the same value as a freehold

Leasehold premises in West Hampstead with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may not finance a property on a short lease

Most high street banks are tightening their criteria and a meaningful number now require flats to have at least sixty if not seventy years left once the mortgage has expired. Considering many flats in West Hampstead were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

What makes us experts in West Hampstead lease extensions?

Irrespective of whether you are a tenant or a freeholder in West Hampstead,the lease extension experts 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 West Hampstead valuers.

West Hampstead Lease Extension Case Summaries:

Jasper, West Hampstead, North London,

Jasper owned a studio flat in West Hampstead on the market with a lease of just over sixty years unexpired. Jasper on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.

West Hampstead case:

In 2013 we were e-mailed by Mr and Mrs. I Ward who, having took over the lease of a basement flat in West Hampstead in August 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in West Hampstead with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded on 4 September 2100. Considering the 74 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.