Top reasons for Harrogate lease extension

Top reasons for lease extension now:

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

Harrogate residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.

An extended lease is almost the same value as a freehold

Leasehold premises in Harrogate with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not issue a mortgage with a short lease

Banks and building societies are tightening their criteria and many now want flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Given that plenty of flats in Harrogate were built in the fifties, sixties and seventies as a result many now need to be extended if they wish to obtain a mortgage.

Why use us for your lease extension in Harrogate?

Regardless of whether you are a tenant or a freeholder in Harrogate,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Harrogate valuers.

Harrogate Lease Extension Example Cases:

Liam, Harrogate, North Yorkshire,

Liam was the the leasehold owner of a studio flat in Harrogate being sold with a lease of a few days over fifty eight years remaining. Liam on an informal basis spoke with his freeholder being a well known Manchester-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 subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Liam to invoke his statutory right. Liam obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.

Harrogate case:

Last month we were approach by Mr V Collins , who bought a recently refurbished flat in Harrogate in July 2000. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable premises in Harrogate with 100 year plus lease were worth £181,600. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2078. Considering the 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including professional charges.

Harrogate case:

Last September we were e-mailed by Mr and Mrs. G Smith , who was assigned a lease of a garden flat in Harrogate in June 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Harrogate with a long lease were valued around £290,000. The average amount of ground rent was £45 billed yearly. The lease came to a finish in 2098. Taking into account 72 years left we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including legals.