Why you should start your West Harrow lease extension

Why you should start your West Harrow lease extension today:

A West 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. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in West Harrow. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in West Harrow have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Do give due attention before delaying your West Harrow lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension

West Harrow property with a lease extension has roughly the same value as a freehold

Leasehold residencies in West Harrow with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to loan monies on a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past lenders were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

Lease extensions in West Harrow can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.

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 dealing with West Harrow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

West Harrow Lease Extension Case Studies:

Riley, West Harrow, North West London,

Riley owned a high value flat in West Harrow on the market with a lease of just over 59 years left. Riley 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 subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Riley to exercise his statutory right. Riley obtained expert advice and secured an acceptable resolution informally and readily saleable.

West Harrow case:

Last Christmas we were phoned by Mr V González , who was assigned a lease of a purpose-built flat in West Harrow in February 1998. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical properties in West Harrow with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 collected every twelve months. The lease lapsed on 13 April 2095. Having 69 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.