Top reasons for Harbury lease extension

Top reasons for lease extension now:

A Harbury lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Harbury. Clearly, the period of lease left reduces over time. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Harbury have the legal entitlement to extend the lease for a further 90 years under legislation. Please give careful consideration before delaying your Harbury lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.

Lending institutions may not loan monies with a short lease

Most mortgage lenders insist on a lengthy amount of time left on a leasehold residence before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is reasonable to assume that someone wanting to buy your property in the future might well do, so where they are not able to obtain a mortgage, then the financial worth of the property will likely suffer. In the last decade most mortgage lenders have increased the required minimum lease length that they are willing to accept

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

The conveyancers that we work with handle Harbury 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.

Harbury Lease Extension Case Summaries:

Ellie, Harbury, Warwickshire,

Subsequent to protracted correspondence with the landlord of her ground floor apartment in Harbury, Ellie initiated the lease extension process as the eighty year mark was swiftly approaching. The lease extension completed in March 2013. The landlord’s charges were kept to an absolute minimum.

Harbury case:

Last month we were approach by Dr J Miller , who acquired a garden apartment in Harbury in November 1995. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable homes in Harbury with a long lease were valued around £166,400. The mid-range ground rent payable was £60 billed every twelve months. The lease terminated on 27 November 2080. Having 54 years remaining we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of fees.

Harbury case:

Last year we were phoned by Mr Logan Morgan , who bought a studio flat in Harbury in January 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Harbury with 100 year plus lease were valued about £227,800. The average amount of ground rent was £45 collected every twelve months. The lease ended on 12 March 2091. Considering the 65 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.