Main reasons to commence your South Harrow lease extension

Why you should commence your South Harrow lease extension today:

A South Harrow lease depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in South Harrow is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in South Harrow will meet the qualifying criteria; nevertheless a conveyancer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.

South Harrow property with a lease extension has roughly the same value as a freehold

Leasehold properties in South Harrow with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies will not lend with a short lease

The trend since 2008 has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

Lease extensions in South Harrow can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with South Harrow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

South Harrow Lease Extension Case Summaries:

Leo, South Harrow, North London

During the course of the last few months Leo, started to get near to the eighty-year mark with the lease on his purpose- built flat in South Harrow. Having bought his flat 19 years previously, the lease term was of minimal interest. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Leo was able to extend his lease just in the nick of time last September. Leo and the freeholder via the managing agents ultimately settled on the final figure of £6,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £975.

South Harrow case:

Dr G Green completed a basement apartment in South Harrow in March 2011. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical residencies in South Harrow with 100 year plus lease were valued about £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease concluded in 2092. Considering the 66 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.