Main reasons to commence your Holborn lease extension

Top reasons for lease extension now:

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

With a residential leasehold property in Holborn, you are actually purchasing a right to live in a property for a set 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 may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Leasehold owners in Holborn with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below 80 years left, under the relevant legislation the landlord can calculate and levy a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.

Holborn property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

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

Lenders are really restricting their approach as regards to properties in Holborn with short leases. For example you may find 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 try your luck at auction thus restricting the amount of prospective buyers.

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

Lease extensions in Holborn can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Holborn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Holborn Lease Extension Example Cases:

Robyn, Holborn, North London,

Subsequent to unsuccessful negotiations with the freeholder of her ground floor apartment in Holborn, Robyn commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The lease extension was concluded in October 2006. The landlord’s costs were kept to an absolute minimum.

Holborn case:

Last Spring we were contacted by Dr Daniel Bennett , who acquired a one bedroom apartment in Holborn in September 1999. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable premises in Holborn with an extended lease were in the region of £300,000. The average amount of ground rent was £50 invoiced yearly. The lease elapsed on 12 May 2101. Considering the 75 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.