Main reasons to commence your Southgate lease extension

Why you should commence your Southgate lease extension today:

A Southgate lease depreciates with the years remaining on the lease.

Southgate residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.

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

Leasehold premises in Southgate with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 justify it.

Lenders may not grant a mortgage with a short lease

The trend since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Southgate lease extensions?

Regardless of whether you are a tenant or a landlord in Southgate,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Southgate valuers.

Southgate Lease Extension Example Cases:

Aarav, Southgate, North London,

Aarav owned a 2 bedroom flat in Southgate being sold with a lease of just over 61 years unexpired. Aarav on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.

Southgate case:

Last month we were contacted by Mr and Mrs. C Richardson , who was assigned a lease of a garden apartment in Southgate in April 2011. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in Southgate with a long lease were in the region of £280,000. The average ground rent payable was £45 invoiced annually. The lease came to a finish on 14 October 2096. Having 70 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.