For anyone whose Harefield home is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold premises in Harefield with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Harefield 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Aaron, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Harefield. In buying his property two decades ago, the lease term was of no interest. Fortunately, he noticed he needed to take steps soon on a lease extension. Aaron extended the lease at the eleventh hour in September. Aaron and the landlord subsequently settled on a premium of £5,000 . If the lease had gone below 80 years, the price would have escalated by at least £850.
Mrs D Davies owned a newly refurbished flat in Harefield in March 2007. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical properties in Harefield with a long lease were valued around £285,000. The mid-range ground rent payable was £45 collected annually. The lease expired in 2096. Given that there were 71 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
An example of a Lease Extension decision for a Harefield premises is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case affected 3 flats. The unexpired term as at the valuation date was 71 years.