The value of Harlington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than 80 years
Leasehold residencies in Harlington with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Harlington leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Teddy owned a high value apartment in Harlington being sold with a lease of just over sixty years outstanding. Teddy informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Last Autumn we were contacted by Dr E Adams , who was assigned a lease of a studio flat in Harlington in November 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar homes in Harlington with a long lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired on 24 May 2103. Having 78 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.
An example of a Freehold Enfranchisement case for a Harlington residence is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The unexpired term as at the valuation date was 69 years.