Top reasons for Harold Wood lease extension

Main reasons to start your Harold Wood lease extension today:

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

There is no doubt about it a leasehold property in Harold Wood is a wasting asset as a result of the shortening lease. Where the residual term has, beyond one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Most flat owners in Harold Wood will qualify for this right; however a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

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

Leasehold residencies in Harold Wood with over one hundred years outstanding 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to issue a mortgage on a short lease

Banks and Building Societies have set criteria when lending monies charged on leasehold property. Many will simply refuse lend at all once an unexpired lease term goes below a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining below seventy years as adequate security. As well as impacting your ability to sell, it is also relevant where you are seeking to remortgage your Harold Wood home.

Why use us for your lease extension in Harold Wood?

The conveyancing solicitors that we work with procure Harold Wood 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 conveyancer we work with provide it.

Harold Wood Lease Extension Case Summaries:

Muhammad, Harold Wood, Essex,

Muhammad was the the leasehold proprietor of a studio flat in Harold Wood on the market with a lease of just over 61 years remaining. Muhammad on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.

Harold Wood case:

In 2010 we were approached by Mr and Mrs. A Roberts who, having bought a purpose-built flat in Harold Wood in October 2011. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical flats in Harold Wood with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 collected yearly. The lease lapsed on 24 March 2103. Given that there were 77 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.