Why you should commence your West Hendon lease extension

Why you should commence your West Hendon lease extension today:

A West Hendon lease depreciates with the years remaining on the lease.

When it comes to residential leasehold premises in West Hendon, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years remaining. Anyone in West Hendon with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has under 80 years left, under the current Act the freeholder can calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.

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

Leasehold premises in West Hendon with more than 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies will not issue a mortgage with a short lease

Banks and building societies are making their criteria more stringent and many now want flats to have at least sixty if not seventy years left at the expiry of the mortgage. Considering many flats in West Hendon were built in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.

Why use us for your lease extension in West Hendon?

The conveyancing solicitors that we work with undertake West Hendon 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.

West Hendon Lease Extension Case Studies:

Harvey, West Hendon, North London

In recent months Harvey, came critically near to the eighty-year mark with the lease on his ground floor flat in West Hendon. In buying his property two decades ago, the unexpired term was of little relevance. Fortunately, he recognised he needed to take steps soon on a lease extension. Harvey was able to extend his lease at the eleventh hour last January. Harvey and the freeholder via the management company subsequently agreed on sum of £5,000 . If he not met the deadline, the figure would have increased by a minimum £925.

West Hendon case:

In 2009 we were phoned by Mr and Mrs. U Reed who, having took over the lease of a ground floor apartment in West Hendon in January 1999. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical properties in West Hendon with an extended lease were worth £250,000. The average amount of ground rent was £50 invoiced quarterly. The lease concluded in 2096. Given that there were 70 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.