Why you should commence your Harmondsworth lease extension

Top reasons for lease extension now:

A Harmondsworth lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Harmondsworth is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed in advance of the 80 year mark. Leasehold Reform legislation entitles Harmondsworth qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions may not issue a mortgage on a short lease

Most mortgage lenders have narrowed their lending criteria in recent years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be inadequate security.

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

Using our service will provide you increased control over the value of your Harmondsworth leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Harmondsworth Lease Extension Example Cases:

Leon, Harmondsworth, West London

Last Spring Leon, started to get close to the 80-year mark with the lease on his studio apartment in Harmondsworth. Having bought his flat 18 years previously, the length of the lease was of no relevance. Fortunately, he recognised he would soon be paying way over the odds for a lease extension. Leon arranged for a lease extension just under the wire last August. Leon and the freeholder via the managing agents eventually settled on an amount of £5,000 . If he not met the deadline, the figure would have increased by at least £850.

Harmondsworth case:

Last month we were called by Mr and Mrs. G Wright , who purchased a one bedroom flat in Harmondsworth in July 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Similar homes in Harmondsworth with an extended lease were in the region of £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease concluded on 17 April 2105. Given that there were 79 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.