Harefield leases on residential properties are gradually losing 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. Most owners of residential leasehold property in Harefield enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Harefield you really ought to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Harefield with more than 100 years unexpired 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Harefield leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Caleb, started to get near to the 80-year mark with the lease on his garden flat in Harefield. In buying his flat two decades ago, the lease term was of little relevance. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Caleb was able to extend his lease at the eleventh hour last July. Caleb and the freeholder via the management company subsequently settled on a premium of £5,500 . If the lease had slid to less than eighty years, the price would have gone up by at least £875.
Dr C Khan bought a basement apartment in Harefield in August 2000. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparative flats in Harefield with a long lease were valued about £198,800. The mid-range ground rent payable was £55 billed per annum. The lease terminated in 2081. Given that there were 55 years remaining we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of legals.
An example of a Lease Extension case for a Harefield property 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 was in relation to 3 flats. The unexpired lease term was 71 years.