Top reasons for Harlow lease extension

Top reasons for lease extension now:

Increase your lease and increase your Harlow property value

Unfortunately that a Harlow residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Harlow property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Harlow will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

Harlow property with a lease extension is almost the same value as a freehold

Leasehold premises in Harlow with more than one hundred years left on the lease are often referred to as ‘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 estate charges merit it.

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

The propensity since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by lenders has increased. In the past lenders would lend on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Harlow lease extensions?

The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.

Harlow Lease Extension Example Cases:

Phoebe, Harlow, Essex,

After unsuccessful correspondence with the freeholder of her leasehold flat in Harlow, Phoebe initiated the lease extension process just as the lease was approaching the critical 80-year mark. The lease extension completed in October 2008. The freeholder’s costs were kept to an absolute minimum.

Harlow case:

Mrs R Lee acquired a studio flat in Harlow in June 2005. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Harlow with a long lease were in the region of £285,000. The average ground rent payable was £55 billed every twelve months. The lease concluded on 13 February 2106. Taking into account 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.

Harlow case:

In 2010 we were contacted by Mr O Cook who, having moved into a first floor flat in Harlow in August 1996. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical flats in Harlow with a long lease were worth £200,800. The average amount of ground rent was £65 collected per annum. The lease came to a finish on 16 April 2086. Considering the 60 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of costs.