Why you should start your Harwell lease extension

Top reasons for lease extension now:

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

It’s an underpublicised truth that a Harwell residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. 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 Harwell property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be payable. Most flat owners in Harwell will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.

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 roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not issue a mortgage on a short lease

Banks and building societies do not like short residential leases. You most probably encounter problems if you want to sell your flat in Harwell if the unexpired term of your lease is less than the criteria set by most lenders. Different lenders have varying criteria but on the whole theyrequire a minimum remaining lease term of 65 years.

Why use us for your lease extension in Harwell?

Irrespective of whether you are a tenant or a freeholder in Harwell,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Harwell valuers.

Harwell Lease Extension Case Studies:

Ryan, Harwell, Oxfordshire,

Ryan was the the leasehold proprietor of a high value apartment in Harwell being marketed with a lease of a few days over 61 years remaining. Ryan informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.

Harwell case:

Mr and Mrs. O Brooks took over the lease of a purpose-built flat in Harwell in July 2005. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in Harwell with an extended lease were in the region of £220,400. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed in 2090. Having 64 years outstanding we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 plus fees.

Harwell case:

Last Autumn we were e-mailed by Mrs Rosie Baker , who bought a basement flat in Harwell in June 1998. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable premises in Harwell with an extended lease were in the region of £270,000. The average amount of ground rent was £55 collected annually. The lease concluded in 2100. Having 74 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.