Top reasons for Tottenham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Tottenham property value

The market value of a leasehold property in Tottenham is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the lease extension process when a lease still has 82 years to run so that all matters can be finalised ahead of the 80 year threshold. Leasehold Reform legislation enables Tottenham qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold premises in Tottenham with in excess of 100 years outstanding 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may not issue a mortgage on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements 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 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Tottenham?

Engaging our service gives you better control over the value of your Tottenham leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Tottenham Lease Extension Example Cases:

Alexander, Tottenham, North London,

Alexander owned a high value flat in Tottenham on the market with a lease of a little over 61 years left. Alexander on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Alexander to exercise his statutory right. Alexander procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.

Tottenham case:

Last Summer we were phoned by Mr and Mrs. S Rose , who owned a ground floor flat in Tottenham in July 2002. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable homes in Tottenham with an extended lease were in the region of £210,600. The average ground rent payable was £45 billed monthly. The lease finished in 2087. Given that there were 62 years unexpired we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including fees.