Why you should commence your South Harrow lease extension

Top reasons for lease extension now:

Increase your lease and increase your South Harrow property value

Unfortunately that a South Harrow residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the South Harrow property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. The majority of leasehold owners in South Harrow will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not loan monies with a short lease

Mortgage companies are really restricting their approach as regards to homes in South Harrow with short leases. For instance you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus narrowing the number of prospective purchasers.

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

Using our service gives you better control over the value of your South Harrow leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish 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.

South Harrow Lease Extension Example Cases:

Olivia, South Harrow, North London,

After lengthy correspondence with the freeholder of her garden flat in South Harrow, Olivia commenced the lease extension process just as her lease was approaching the all-important eighty-year threshold. The legal work was concluded in June 2005. The freeholder’s charges were negotiated to a tad over four hundred GBP.

South Harrow case:

In 2014 we were phoned by Mr and Mrs. C Gunderson who, having bought a ground floor flat in South Harrow in September 1996. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar properties in South Harrow with 100 year plus lease were valued around £166,400. The average amount of ground rent was £60 collected per annum. The lease lapsed on 2 August 2080. Given that there were 54 years remaining we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of legals.