Why you should commence your Totteridge lease extension

Why you should commence your Totteridge lease extension today:

A Totteridge leasehold property depreciates with the years remaining on the lease.

Totteridge leases on residential deteriorating in value. Where your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Totteridge will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lenders will not finance a property with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks 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 longer and longer leases - many now have a minimum term of 75 years as standard.

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

Using our service will provide you enhanced control over the value of your Totteridge leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Totteridge Lease Extension Example Cases:

Gemma, Totteridge, North London,

Subsequent to lengthy discussions with the landlord of her basement apartment in Totteridge, Gemma commenced the lease extension process just as her lease was approaching the critical 80-year deadline. The lease extension completed in September 2015. The freeholder’s fees were kept to an absolute minimum.

Totteridge case:

Last Summer we were phoned by Ms Kirsty Rodríguez , who purchased a one bedroom apartment in Totteridge in April 1995. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative premises in Totteridge with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease ran out on 26 February 2104. Considering the 78 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.