Main reasons to start your Friern Barnet lease extension

Why you should commence your Friern Barnet lease extension today:

A Friern Barnet leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Friern Barnet residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Friern Barnet property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Most flat owners in Friern Barnet will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.

Friern Barnet property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Banks and building societies are really clamping down as regards to homes in Friern Barnet with short leases. For example you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus narrowing your market.

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

Engaging our service will provide you enhanced control over the value of your Friern Barnet leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Friern Barnet Lease Extension Example Cases:

Tommy, Friern Barnet, North London,

Tommy was the the leasehold owner of a conversion apartment in Friern Barnet being marketed with a lease of a few days over sixty years left. Tommy on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.

Friern Barnet case:

In 2010 we were approached by Mr and Mrs. H Bell who, having completed a one bedroom flat in Friern Barnet in October 2005. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar homes in Friern Barnet with 100 year plus lease were worth £208,200. The mid-range ground rent payable was £65 collected yearly. The lease came to a finish on 27 October 2087. Given that there were 61 years unexpired we approximated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including fees.