Top reasons for Willesden lease extension

Top reasons for lease extension now:

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

The nearer a residential lease in Willesden gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 100 years remaining then this decrease may be of little impact however there will become a point in time 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 increase sharply the cost. It is the main reason why you should consider extending without delay. Most flat owners in Willesden will qualify for this right; however a conveyancer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Willesden with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may not issue a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This may be problematic when you wish to dispose of or refinance your property as it will be effectively unmortgageable. Even though you may not have an immediate plan to sell but when you do your purchaser must hold off for two years before they can start the legal procedures for a lease extension.

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

Retaining our service will provide you enhanced control over the value of your Willesden leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Willesden Lease Extension Example Cases:

Charlie, Willesden, North West London

In recent months Charlie, came dangerously close to the 80-year threshold with the lease on his studio apartment in Willesden. Having bought his flat two decades ago, the lease term was of minimal bearing. As luck would have it, he became aware that he needed to take action soon on a lease extension. Charlie was able to extend his lease just in the nick of time last June. Charlie and the landlord ultimately settled on sum of £5,000 . If the lease had gone to less than eighty years, the figure would have become more costly by at least £950.

Willesden case:

In 2013 we were e-mailed by Dr N Khan who, having took over the lease of a basement apartment in Willesden in November 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Willesden with a long lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out in 2088. Taking into account 63 years left we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.