Why you should commence your Bowes Park lease extension

Top reasons for lease extension now:

A Bowes Park lease depreciates with the years remaining on the lease.

Bowes Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Bowes Park residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bowes Park you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

Bowes Park property with a lease extension has roughly the same value as a freehold

Leasehold premises in Bowes Park with more than 100 years remaining on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

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

Mortgage companies are really clamping down as regards to properties in Bowes Park with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you needed to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus narrowing your market.

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

Regardless of whether you are a tenant or a freeholder in Bowes Park,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bowes Park valuers.

Bowes Park Lease Extension Example Cases:

Mason, Bowes Park, North London,

Mason owned a conversion apartment in Bowes Park on the market with a lease of a little over 61 years left. Mason on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Mason to invoke his statutory right. Mason procured expert legal guidance and secured an acceptable deal informally and readily saleable.

Bowes Park case:

Mr and Mrs. K Flores owned a one bedroom apartment in Bowes Park in May 2011. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative flats in Bowes Park with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 collected per annum. The lease ended on 4 November 2094. Considering the 68 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.