Why you should start your Havering lease extension

Top reasons for lease extension now:

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

The nearer a residential lease in Havering nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Havering will meet the qualifying criteria; however a conveyancer should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.

Lenders may decide not to loan monies with a short lease

Nearly all mortgage companies will not grant a mortgage on a lease with less than seventy years unexpired - although this varies between mortgage companies. A buyer will no doubt encounter difficulties to obtain a mortgage and this will result in your Havering property being difficult to dispose of or remortgage.

What makes us experts in Havering lease extensions?

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

Havering Lease Extension Example Cases:

Logan, Havering, London,

Logan owned a studio apartment in Havering being marketed with a lease of fraction over 61 years outstanding. Logan on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Logan to exercise his statutory right. Logan obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.

Havering case:

In 2010 we were called by Ms H Wilson who, having purchased a garden flat in Havering in June 2002. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative residencies in Havering with a long lease were valued about £210,000. The average ground rent payable was £50 invoiced monthly. The lease terminated on 24 June 2106. Having 80 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.