Why you should start your Harringay lease extension

Why you should commence your Harringay lease extension today:

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

It’s a harsh truth that a Harringay residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Harringay property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Harringay will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

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

Leasehold premises in Harringay with more than 100 years unexpired 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 freehold unless savings on ground rent and service charges merit it.

Mortgage lenders may not loan monies on a short lease

Most high street banks are tightening their criteria and a meaningful number now want flats to have a minimum of 60 if not 70 years remaining at the end of the mortgage. Given that a number of flats in Harringay were built in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

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

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

Harringay Lease Extension Example Cases:

Jude, Harringay, North London,

Jude owned a 2 bedroom flat in Harringay on the market with a lease of just over sixty years outstanding. Jude informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Harringay case:

Last Spring we were called by Dr Logan Phillips , who completed a purpose-built flat in Harringay in April 2005. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparative premises in Harringay with 100 year plus lease were worth £257,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed on 24 May 2091. Considering the 65 years outstanding we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including fees.