Main reasons to commence your Golders Green lease extension

Top reasons for lease extension now:

Increase your lease and increase your Golders Green property value

When it comes to domestic leasehold property in Golders Green, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Leasehold owners in Golders Green with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has under 80 years remaining, under the current Act the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.

Golders Green property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies may not issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to get nervous at around 75 years. This may cause difficulties as and when you wish to dispose of or remortgage your flat as it will be effectively unmortgageable. Even though you might not have an immediate intention to sell but when you do your buyer must hold off for a couple of years before they can exercise the right to a an extension to the lease.

What makes us experts in Golders Green lease extensions?

The conveyancing solicitors that we work with undertake Golders Green 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 conveyancing solicitor we work with provide it.

Golders Green Lease Extension Case Studies:

Edward, Golders Green, North London,

Edward owned a studio flat in Golders Green on the market with a lease of fraction over sixty years left. Edward informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward obtained expert advice and secured satisfactory resolution without going to tribunal and sell the property.

Golders Green case:

Mr and Mrs. I Richardson was assigned a lease of a one bedroom flat in Golders Green in February 2008. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical premises in Golders Green with 100 year plus lease were valued around £166,800. The average amount of ground rent was £50 billed yearly. The lease finished in 2076. Having 50 years left we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including costs.