Top reasons for Harold Wood lease extension

Why you should start your Harold Wood lease extension today:

A Harold Wood lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Harold Wood is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded in advance of the 80 year threshold. Current legislation enables Harold Wood qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a notional rent (no ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

Harold Wood property with a lease extension has roughly the same value as a freehold

Leasehold premises in Harold Wood with more than one hundred years left on the lease are often 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 maintenance charges warrant it.

Mortgage lenders will not finance a property with a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now want flats to have a minimum of 60 if not 70 years remaining at the end of the mortgage. Considering a number of flats in Harold Wood were created in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

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

Irrespective of whether you are a tenant or a landlord in Harold Wood,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Harold Wood valuers.

Harold Wood Lease Extension Example Cases:

Poppy, Harold Wood, Essex,

Following lengthy correspondence with the landlord of her purpose-built apartment in Harold Wood, Poppy commenced the lease extension process just as the lease was nearing the crucial 80-year threshold. The legal work was finalised in April 2009. The freeholder’s fees were negotiated to a tad over four hundred GBP.

Harold Wood case:

Last Summer we were e-mailed by Mrs M Simon , who took over the lease of a one bedroom apartment in Harold Wood in June 2002. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Harold Wood with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced yearly. The lease end date was on 14 July 2083. Given that there were 57 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.