Why you should commence your West Harrow lease extension

Why you should commence your West Harrow lease extension today:

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

The market value of a leasehold property in West Harrow depends on how many years the lease has left to run. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be concluded well before the eighty year cut off point. Statute entitles West Harrow qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty 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 purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold premises in West Harrow with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not grant a mortgage on a short lease

Banks and Building Societies have specific criteria when loaning funds secured on leasehold homes. Many will simply refrain from lending at all once the remaining lease term drops under a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than 75 years as adequate security. As well as impacting your ability to sell, it is also relevant where you are intending to refinance your West Harrow property.

Why use us for your lease extension in West Harrow?

Irrespective of whether you are a tenant or a landlord in West Harrow,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Harrow valuers.

West Harrow Lease Extension Case Studies:

Samantha, West Harrow, North West London,

Subsequent to lengthy negotiations with the freeholder of her two bedroom flat in West Harrow, Samantha commenced the lease extension process as the eighty year deadline was swiftly approaching. The lease extension was finalised in October 2011. The freeholder’s costs were kept to an absolute minimum.

West Harrow case:

Last February we were called by Dr Toby Bonnet , who completed a studio apartment in West Harrow in September 2012. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable premises in West Harrow with 100 year plus lease were in the region of £208,600. The mid-range amount of ground rent was £60 billed monthly. The lease finished in 2083. Given that there were 57 years as a residual term we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of fees.