Why you should commence your Harold Wood lease extension

Why you should start your Harold Wood lease extension today:

Increase your lease and increase your Harold Wood property value

There is no doubt about it a leasehold property in Harold Wood is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Harold Wood will qualify for this right; that being said a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Harold Wood with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to finance a property on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to become nervous at around 75 years. This will be problematic once you come to market or refinance your property as it will be practically unmortgageable. Even though you may have no immediate plan to sell but when you do your purchaser must wait 2 years before they can commence the legal procedures for a lease extension.

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

Retaining our service will provide you enhanced control over the value of your Harold Wood leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Harold Wood Lease Extension Example Cases:

Alexander, Harold Wood, Essex

Half a year ago Alexander, came critically close to the eighty-year mark with the lease on his ground floor flat in Harold Wood. In buying his property two decades ago, the lease term was of little interest. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Alexander extended the lease just ahead of time last March. Alexander and the landlord eventually settled on the final figure of £5,000 . If the lease had descended lower than eighty years, the price would have increased by a minimum £1,150.

Harold Wood case:

Last Summer we were phoned by Ms L Leroy , who completed a first floor flat in Harold Wood in April 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Harold Wood with a long lease were valued about £250,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded in 2095. Given that there were 69 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.