Main reasons to commence your South Harrow lease extension

Main reasons to start your South Harrow lease extension today:

Increase your lease and increase your South Harrow property value

The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in South Harrow may extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your South Harrow lease extension. Shelving the costs now simply increases the premium you will eventually have to pay for a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in South Harrow with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to lend with a short lease

Mortgage companies are really restricting their approach as regards to properties in South Harrow with short leases. For instance you might discover that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus limiting your market.

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

Using our service will provide you better control over the value of your South Harrow leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

South Harrow Lease Extension Case Summaries:

Oscar, South Harrow, North London

Last Christmas Oscar, started to get close to the eighty-year mark with the lease on his basement flat in South Harrow. Having purchased his flat two decades ago, the lease term was of no importance. Luckily, he recognised he needed to take steps soon on Extending the lease. Oscar arranged for a lease extension just ahead of time last June. Oscar and the freeholder via the management company in the end settled on sum of £5,500 . If the lease had slid below 80 years, the premium would have gone up by at least £1,100.

South Harrow case:

Ms Erin Rodríguez bought a basement flat in South Harrow in June 2009. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical premises in South Harrow with 100 year plus lease were valued about £215,600. The average ground rent payable was £45 invoiced yearly. The lease ran out on 17 October 2088. Considering the 62 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including professional charges.