Why you should commence your Highgate lease extension

Why you should commence your Highgate lease extension today:

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

Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Highgate. Inevitably, the term of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Highgate have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful deliberation before delaying your Highgate lease extension. Holding off that expense now simply increases the price you will ultimately incur for a lease extension

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.

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

Mortgage companies are tightening their criteria and a meaningful number now expect flats to have a minimum of 60 if not 70 years left at the expiry of the mortgage. Considering a number of flats in Highgate were built in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Highgate lease extensions?

Retaining our service gives you increased control over the value of your Highgate leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Highgate Lease Extension Case Summaries:

Lucas, Highgate, North London

In recent months Lucas, came very close to the eighty-year mark with the lease on his one bedroom apartment in Highgate. Having bought his property 18 years ago, the length of the lease was of little bearing. by good luck, it dawned on him that he would imminently be paying way over the odds for a lease extension. Lucas extended the lease just in the nick of time last May. Lucas and the landlord subsequently settled on the final figure of £6,000 . If the lease had fallen below 80 years, the price would have gone up by a minimum £1,125.

Highgate case:

Mrs B Hall acquired a ground floor apartment in Highgate in September 2003. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical residencies in Highgate with a long lease were worth £246,800. The mid-range ground rent payable was £60 invoiced per annum. The lease finished on 14 March 2076. Taking into account 50 years outstanding we calculated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including fees.