Main reasons to commence your North Harrow lease extension

Main reasons to start your North Harrow lease extension today:

A North Harrow lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in North Harrow. Inevitably, the length of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in North Harrow have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give careful deliberation before delaying your North Harrow lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease

An extended lease has roughly the same value as a freehold

Leasehold residencies in North Harrow with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not lend with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in North Harrow lease extensions?

The conveyancers that we work with procure North Harrow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

North Harrow Lease Extension Case Summaries:

Aarav, North Harrow, North London,

Aarav was the the leasehold proprietor of a 2 bedroom flat in North Harrow on the market with a lease of just over sixty years unexpired. Aarav informally spoke with his landlord 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 subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.

North Harrow case:

In 2013 we were called by Dr A Hall who, having was assigned a lease of a one bedroom apartment in North Harrow in March 1998. The question was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Similar homes in North Harrow with an extended lease were valued about £173,800. The average amount of ground rent was £60 invoiced per annum. The lease terminated on 8 March 2081. Having 55 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.