Main reasons to commence your Harlow lease extension

Why you should commence your Harlow lease extension today:

A Harlow leasehold property depreciates with the years remaining on the lease.

Harlow leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Harlow will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain situations you may not qualify. There are prescribed timetables and formalities to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Harlow with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may decide not to lend with a short lease

Lenders do not lend on short residential leases. You are likely to encounter difficulties if you need to sell your flat in Harlow if the unexpired term of your lease is less than the criteria set by most lenders. Different lenders have different criteria but in the main they are looking for a minimum remaining lease term of seventy years.

What makes us experts in Harlow lease extensions?

The conveyancing solicitors that we work with handle Harlow 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 lawyer we work with provide it.

Harlow Lease Extension Example Cases:

Seth, Harlow, Essex

Half a year ago Seth, came critically close to the eighty-year threshold with the lease on his basement flat in Harlow. In buying his home 18 years previously, the lease term was of no significance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Seth arranged for a lease extension at the eleventh hour last June. Seth and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he had missed the deadline, the sum would have become more costly by at least £1,000.

Harlow case:

Last Summer we were phoned by Ms B Hernández , who moved into a recently refurbished apartment in Harlow in May 2004. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparable properties in Harlow with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 billed quarterly. The lease terminated on 6 November 2102. Having 76 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.

Harlow case:

Dr V Vincent bought a one bedroom apartment in Harlow in July 2009. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Harlow with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 invoiced yearly. The lease elapsed in 2082. Considering the 56 years remaining we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of costs.