Top reasons for Southgate lease extension

Why you should start your Southgate lease extension today:

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

With a domestic leasehold premises in Southgate, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Anyone in Southgate with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once a lease has under eighty years left, under the relevant Act the landlord can calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Southgate with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may not grant a mortgage on a short lease

Mortgage lenders have set criteria when loaning monies secured on leasehold property. Some will simply refrain from lending at all once the residual lease term falls below a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below 75 years as adequate security. As well as impacting your ability to sell, it is also relevant if you are intending to refinance your Southgate home.

What makes us experts in Southgate lease extensions?

The lawyers that we work with procure Southgate lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Southgate Lease Extension Case Studies:

Grace, Southgate, North London,

Trailing protracted correspondence with the freeholder of her purpose-built flat in Southgate, Grace initiated the lease extension process just as her lease was approaching the crucial 80-year threshold. The transaction was finalised in February 2010. The freeholder’s charges were kept to an absolute minimum.

Southgate case:

Dr Leah Wilson moved into a first floor apartment in Southgate in October 2010. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical premises in Southgate with a long lease were worth £200,000. The average amount of ground rent was £50 billed annually. The lease ran out in 2104. Taking into account 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.