Why you should start your Willesden lease extension

Main reasons to commence your Willesden lease extension today:

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

Willesden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Willesden residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Willesden you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

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

Leasehold premises in Willesden with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may not loan monies with a short lease

Lenders are really restricting their approach as regards to homes in Willesden with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you needed to sell, your only options would be to find a cash buyer, or hope for the best at auction thus reducing the number of potential purchasers.

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

The conveyancers that we work with handle Willesden 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 conveyancing solicitor we work with provide it.

Willesden Lease Extension Case Studies:

Reuben, Willesden, North West London,

Reuben owned a studio flat in Willesden on the market with a lease of fraction over sixty years outstanding. Reuben on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert advice and secured satisfactory deal informally and sell the property.

Willesden case:

In 2012 we were e-mailed by Mr and Mrs. N Mitchell who, having owned a one bedroom flat in Willesden in November 2008. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative properties in Willesden with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 collected every twelve months. The lease ended in 2096. Having 70 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.