Top reasons for West Hampstead lease extension

Why you should commence your West Hampstead lease extension today:

A West Hampstead leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in West Hampstead is impacted by how many years the lease has remaining. If it is near 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 before buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that formalities can be addressed ahead of the 80 year threshold. Current legislation enables West Hampstead qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

West Hampstead property with a lease extension is almost the same value as a freehold

Leasehold premises in West Hampstead with over 100 years outstanding 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders may decide not to finance a property on a short lease

Nearly all banks and building societies will be unwilling to lend on a lease with less than seventy years left to run - although this varies between mortgage companies. A buyer will undoubtedly find it difficult in obtaining a mortgage and this will result in your West Hampstead property becoming difficult to dispose of or remortgage.

What makes us experts in West Hampstead lease extensions?

The conveyancers that we work with procure West Hampstead 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 conveyancer we work with provide it.

West Hampstead Lease Extension Example Cases:

Mollie, West Hampstead, North London,

In the wake of 6 months of protracted correspondence with the landlord of her basement apartment in West Hampstead, Mollie started the lease extension process just as the lease was approaching the critical eighty-year threshold. The legal work was concluded in August 2013. The freeholder’s fees were negotiated to below 700 pounds.

West Hampstead case:

Dr E Gómez acquired a first floor flat in West Hampstead in March 2006. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Identical premises in West Hampstead with an extended lease were in the region of £200,800. The average amount of ground rent was £65 billed every twelve months. The lease terminated on 6 April 2085. Considering the 60 years outstanding we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of costs.