Why you should start your Harrold lease extension

Main reasons to commence your Harrold lease extension today:

Increase your lease and increase your Harrold property value

The closer a residential lease in Harrold nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 100 years remaining then this decrease may be fractional that being said 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 known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Harrold will qualify for this right; that being said a conveyancer will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions will not loan monies on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

Regardless of whether you are a tenant or a landlord in Harrold,the lease extension solicitors 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 Harrold valuers.

Harrold Lease Extension Case Studies:

Lucas, Harrold, Bedfordshire

Two years ago Lucas, came dangerously close to the 80-year threshold with the lease on his two bedroom flat in Harrold. Having bought his home 19 years ago, the lease term was of little significance. by good luck, he noticed he needed to take action soon on a lease extension. Lucas arranged for a lease extension just in the nick of time in June. Lucas and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If he had missed the deadline, the price would have escalated by a minimum £850.

Harrold case:

In 2010 we were phoned by Dr E Mercier who, having moved into a first floor flat in Harrold in April 1998. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Harrold with an extended lease were in the region of £285,000. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish on 10 February 2106. Having 80 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.

Harrold case:

In 2009 we were approached by Dr Poppy Flores who, having moved into a one bedroom flat in Harrold in November 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparative residencies in Harrold with a long lease were worth £200,800. The average ground rent payable was £65 collected quarterly. The lease ran out in 2086. Considering the 60 years left we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus expenses.