Main reasons to start your Havering lease extension

Why you should start your Havering lease extension today:

Increase your lease and increase your Havering property value

It’s a harsh truth that a Havering residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Havering property prices.Once your lease gets to 85ish years, you need to start considering 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 under 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Havering will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Mortgage lenders will not loan monies with a short lease

Mortgage companies do not lend on short residential leases. You most probably experience difficulties where you need to sell your flat in Havering if the unexpired lease term is less than the criteria set by the majority of mortgage companies. Different lenders have different criteria but on the whole they are looking for an unexpired term of at least seventy years.

Get in touch with one of our Havering lease extension solicitors or enfranchisement solicitors

Lease extensions in Havering can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Havering lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Havering Lease Extension Example Cases:

Tommy, Havering, London,

Tommy owned a high value flat in Havering on the market with a lease of a few days over 72 years remaining. Tommy on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.

Havering case:

Last month we were phoned by Dr Jake Bennett , who purchased a one bedroom flat in Havering in May 2006. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Identical premises in Havering with an extended lease were in the region of £250,400. The average ground rent payable was £65 collected monthly. The lease ended in 2090. Taking into account 64 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of expenses.