Top reasons for Brent Cross lease extension

Why you should commence your Brent Cross lease extension today:

Increase your lease and increase your Brent Cross property value

When it comes to residential leasehold premises in Brent Cross, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years remaining. Residents in Brent Cross with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has under eighty years left, under the current statute the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.

Brent Cross property with a lease extension has roughly the same value as a freehold

Leasehold properties in Brent Cross with over 100 years outstanding 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may not grant a mortgage on a short lease

The trend since 2008 has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Brent Cross?

The lawyers that we work with handle Brent Cross 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 conveyancer we work with provide it.

Brent Cross Lease Extension Example Cases:

Benjamin, Brent Cross, North London,

Benjamin owned a high value flat in Brent Cross being sold with a lease of a little over 72 years remaining. Benjamin informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

Brent Cross case:

In 2012 we were approached by Dr Nathan López who, having was assigned a lease of a garden flat in Brent Cross in August 1999. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Brent Cross with a long lease were worth £270,000. The mid-range amount of ground rent was £65 collected yearly. The lease finished on 11 June 2093. Considering the 68 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.