Main reasons to start your Harringay lease extension

Top reasons for lease extension now:

A Harringay lease depreciates with the years remaining on the lease.

When it comes to domestic leasehold premises in Harringay, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years left. Anyone in Harringay with a lease nearing 81 years left should seriously think of extending it as soon as possible. When the lease term has under 80 years remaining, under the relevant statute the freeholder can calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

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

Leasehold properties in Harringay with in excess of 100 years outstanding on the lease are often 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 purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions will not grant a mortgage on a short lease

Almost all banks and building societies will be unwilling to lend on a lease with less than seventy years left to run - although this varies from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Harringay property being difficult to dispose of or remortgage.

Why use us for your lease extension in Harringay?

Using our service will provide you increased control over the value of your Harringay leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Harringay Lease Extension Case Studies:

Evan, Harringay, North London,

Evan was the the leasehold owner of a 2 bedroom apartment in Harringay on the market with a lease of a little over 61 years unexpired. Evan on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Evan to invoke his statutory right. Evan obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.

Harringay case:

In 2012 we were phoned by Mr and Mrs. V Jackson who, having acquired a basement apartment in Harringay in April 2007. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparable homes in Harringay with an extended lease were valued about £243,000. The average amount of ground rent was £65 invoiced yearly. The lease lapsed in 2088. Taking into account 63 years unexpired we calculated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus expenses.