Main reasons to commence your South Harrow lease extension

Top reasons for lease extension now:

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

South Harrow leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher amount will be due. Flat owners in South Harrow will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

Leasehold properties in South Harrow with more than 100 years remaining on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not finance a property on a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies were content with twenty 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 use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in South Harrow?

The conveyancers that we work with undertake South Harrow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

South Harrow Lease Extension Example Cases:

Harrison, South Harrow, North London,

Harrison was the the leasehold owner of a studio flat in South Harrow on the market with a lease of fraction over 61 years outstanding. Harrison on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Harrison to invoke his statutory right. Harrison procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.

South Harrow case:

Mr Leo Khan completed a ground floor flat in South Harrow in July 2002. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical homes in South Harrow with an extended lease were worth £203,200. The mid-range amount of ground rent was £65 billed yearly. The lease expired in 2086. Taking into account 61 years left we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.