Top reasons for Harlesden lease extension

Top reasons for lease extension now:

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

Harlesden leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Harlesden residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Harlesden you must check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Harlesden with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may not issue a mortgage with a short lease

Nearly all mortgage companies will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult to obtain a mortgage and this will result in your Harlesden property being difficult to sell or refinance.

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

The lawyers that we work with procure Harlesden 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.

Harlesden Lease Extension Example Cases:

Dexter, Harlesden, North West London

In recent months Dexter, started to get near to the 80-year threshold with the lease on his garden apartment in Harlesden. In buying his home two decades ago, the lease term was of no bearing. by good luck, he realised he would imminently be paying way over the odds for a lease extension. Dexter was able to extend his lease just under the wire last March. Dexter and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If he not met the deadline, the figure would have gone up by at least £1,000.

Harlesden case:

In 2011 we were approached by Ms R Petit who, having purchased a one bedroom apartment in Harlesden in August 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Harlesden with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 collected monthly. The lease finished in 2101. Having 76 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.