Main reasons to start your North Finchley lease extension

Why you should start your North Finchley lease extension today:

A North Finchley leasehold property depreciates with the years remaining on the lease.

North Finchley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most North Finchley tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in North Finchley you would be well advised to investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a North Finchley leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

Leasehold properties in North Finchley with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to issue a mortgage with a short lease

Lenders do not like short residential leases. You are likely to encounter problems where you need to sell your flat in North Finchley if the remaining lease term is below the criteria set by most lenders. Different mortgage companies have different criteria but in the main they are looking for an unexpired term of at least seventy years.

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

Engaging our service will provide you better control over the value of your North Finchley leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

North Finchley Lease Extension Case Studies:

Kian, North Finchley, North London

Last year Kian, came perilously close to the 80-year mark with the lease on his garden apartment in North Finchley. In buying his home 19 years ago, the lease term was of little importance. by good luck, he became aware that he would soon be paying an inflated amount for a lease extension. Kian extended the lease just under the wire last June. Kian and the freeholder via the management company eventually settled on the final figure of £5,000 . If the lease had fallen lower than 80 years, the premium would have become more costly by at least £875.

North Finchley case:

In 2009 we were e-mailed by Dr R Moore who, having bought a ground floor apartment in North Finchley in January 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative homes in North Finchley with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease end date was on 7 April 2084. Given that there were 58 years left we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.