Why you should commence your Harlesden lease extension

Why you should commence your Harlesden lease extension today:

Increase your lease and increase your Harlesden property value

When it comes to domestic leasehold property in Harlesden, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years left. Anyone in Harlesden with a lease nearing 81 years remaining should seriously think of extending it sooner than later. When the lease term has below eighty years left, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold premises in Harlesden with more than 100 years left 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders will not loan monies on a short lease

Lenders are making their criteria more stringent and a meaningful number now require flats to have at least 60 if not 70 years remaining once the mortgage has expired. Considering a number of flats in Harlesden were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in Harlesden lease extensions?

Regardless of whether you are a tenant or a landlord in Harlesden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Harlesden valuers.

Harlesden Lease Extension Example Cases:

Alfie, Harlesden, North West London

Two years ago Alfie, came critically close to the eighty-year mark with the lease on his two bedroom flat in Harlesden. In buying his flat 19 years previously, the unexpired term was of no concern. Thankfully, he recognised he needed to take action soon on Extending the lease. Alfie extended the lease just under the wire in August. Alfie and the landlord ultimately agreed on a premium of £5,000 . If the lease had gone below 80 years, the premium would have become more costly by a minimum £1,125.

Harlesden case:

Last Winter we were contacted by Dr C Smith , who owned a basement flat in Harlesden in September 1996. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative properties in Harlesden with a long lease were valued around £250,000. The mid-range ground rent payable was £50 billed per annum. The lease finished in 2095. Taking into account 69 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.