Top reasons for Harrow lease extension

Why you should commence your Harrow lease extension today:

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

The market value of a leasehold property in Harrow is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years to run so that a lease extension can be finalised well before the eighty year mark. Statute entitles Harrow qualifying lessees to an additional term of 90 years over and above the existing term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost 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 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.

Lending institutions will not loan monies with a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. Historically lenders were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Harrow?

Irrespective of whether you are a tenant or a freeholder in Harrow,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 experience and the close ties they enjoy with Harrow valuers.

Harrow Lease Extension Case Studies:

Callum, Harrow, North West London,

Callum was the the leasehold owner of a studio apartment in Harrow on the market with a lease of a little over fifty eight years left. Callum on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Harrow case:

Mrs Megan Peterson took over the lease of a one bedroom apartment in Harrow in October 2000. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative homes in Harrow with a long lease were in the region of £201,200. The average ground rent payable was £55 invoiced per annum. The lease expired on 27 February 2082. Considering the 56 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including professional charges.