Main reasons to commence your West Harrow lease extension

Top reasons for lease extension now:

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

When it comes to residential leasehold premises in West Harrow, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years left. Residents in West Harrow with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. When a lease has under 80 years left, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.

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

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

Banks and Building Societies may decide not to lend with a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This may be problematic as and when you need to dispose of or refinance your flat as it will be practically unmortgageable. Even though you might not have an immediate plan to sell but when you do your buyer must wait two years before they can exercise the right to a a lease extension.

Why use us for your lease extension in West Harrow?

Engaging our service gives you increased control over the value of your West Harrow leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

West Harrow Lease Extension Case Studies:

George, West Harrow, North West London

Two years ago George, came precariously close to the 80-year mark with the lease on his ground floor apartment in West Harrow. Having bought his property twenty years previously, the unexpired term was of minimal significance. Fortunately, he recognised he would soon be paying an escalated premium for a lease extension. George was able to extend his lease just under the wire last March. George and the landlord who owned the flat above in the end settled on a premium of £5,500 . If the lease had dipped lower than eighty years, the premium would have increased by a minimum £950.

West Harrow case:

Mr and Mrs. F Vincent bought a one bedroom flat in West Harrow in June 2000. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in West Harrow with a long lease were in the region of £184,000. The average amount of ground rent was £55 billed quarterly. The lease came to a finish on 5 August 2079. Taking into account 53 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.