Why you should commence your New Barnet lease extension

Top reasons for lease extension now:

A New Barnet leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised certainty that a New Barnet residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the New Barnet property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining dips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in New Barnet will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

New Barnet property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Banks and building societies are distinct in their lending requirements. Some set the bar at 75 years remaining on the lease; others may be content with anything in excess seventy years. With less than sixty years, it may be problematic to obtain a mortgage in the first place.

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

The conveyancing solicitors that we work with handle New Barnet 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.

New Barnet Lease Extension Case Studies:

Kai, New Barnet, Hertfordshire

Last Christmas Kai, started to get close to the eighty-year mark with the lease on his garden apartment in New Barnet. Having bought his flat two decades ago, the lease term was of no interest. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. Kai extended the lease just ahead of time in January. Kai and the freeholder subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the sum would have become more costly by at least £875.

New Barnet case:

Last month we were called by Mr and Mrs. F Young , who owned a one bedroom apartment in New Barnet in November 2002. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar residencies in New Barnet with 100 year plus lease were valued about £254,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished in 2077. Taking into account 51 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 plus legals.