Why you should start your North Finchley lease extension

Main reasons to commence your North Finchley lease extension today:

Increase your lease and increase your North Finchley property value

The market value of a leasehold property in North Finchley depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be concluded ahead of the 80 year cut off point. Statute entitles North Finchley qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

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

Lenders may not finance a property with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to get jittery at around 75 years. This will be problematic once you need to dispose of or refinance your flat as it will be practically unmortgageable. Even though you might have no immediate plan to sell but when you do your purchaser will need to wait two years before they can exercise the right to a a lease extension.

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

Using our service will provide you better control over the value of your North Finchley leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers 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:

Luca, North Finchley, North London,

Luca owned a 2 bedroom apartment in North Finchley on the market with a lease of fraction over 61 years unexpired. Luca informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.

North Finchley case:

Last Autumn we were approach by Mrs Emma Anderson , who was assigned a lease of a studio flat in North Finchley in January 1997. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative homes in North Finchley with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ended on 17 July 2104. Having 78 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.