Top reasons for Harpenden lease extension

Why you should start your Harpenden lease extension today:

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

Harpenden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Harpenden enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Harpenden you would be well advised to see if your lease has between 70 and ninety years left. There are compelling reasons why a Harpenden leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.

Lending institutions may not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to become concerned at around 75 years. This may be problematic when you wish to market or refinance your property as it will be practically unmortgageable. You might not have an immediate plan to sell but when you do your purchaser must hold off for 2 years before they can initiate the legal procedures for an extension to the lease.

What makes us experts in Harpenden lease extensions?

The conveyancers that we work with handle Harpenden 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 conveyancer we work with provide it.

Harpenden Lease Extension Example Cases:

Hugo, Harpenden, Hertfordshire,

Hugo was the the leasehold proprietor of a 2 bedroom flat in Harpenden being marketed with a lease of a few days over 59 years unexpired. Hugo on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and secured satisfactory deal informally and readily saleable.

Harpenden case:

Last year we were contacted by Mr G David , who took over the lease of a one bedroom flat in Harpenden in April 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Harpenden with a long lease were worth £240,600. The average amount of ground rent was £60 collected per annum. The lease elapsed in 2088. Having 62 years left we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of fees.

Harpenden case:

In 2014 we were approached by Mr and Mrs. F Laurent who, having moved into a studio apartment in Harpenden in August 2012. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable residencies in Harpenden with a long lease were worth £174,200. The average amount of ground rent was £55 collected per annum. The lease expired in 2077. Having 51 years remaining we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including expenses.