Why you should start your Willesden lease extension

Main reasons to commence your Willesden lease extension today:

Increase your lease and increase your Willesden property value

When it comes to domestic leasehold property in Willesden, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years remaining. Anyone in Willesden with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. When a lease has less than 80 years remaining, under the current Act the landlord can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Willesden with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders may not lend on a short lease

Lenders are making their criteria more stringent and many now expect flats to have a minimum of 60 if not 70 years left at the end of the mortgage. Given that many flats in Willesden were created in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to get a mortgage.

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

Using our service will provide you better control over the value of your Willesden leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Willesden Lease Extension Case Studies:

Felix, Willesden, North West London

During the course of the last few months Felix, came perilously close to the eighty-year mark with the lease on his garden flat in Willesden. Having purchased his property two decades ago, the length of the lease was of little significance. Thankfully, he noticed he would soon be paying an inflated amount for a lease extension. Felix arranged for a lease extension just under the wire in August. Felix and the freeholder via the managing agents in the end agreed on the final figure of £5,000 . If the lease had slipped below 80 years, the sum would have become more costly by a minimum £1,050.

Willesden case:

Ms Molly Davies moved into a basement apartment in Willesden in September 2004. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative residencies in Willesden with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 collected per annum. The lease finished in 2104. Given that there were 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.