Harlow 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 gets more expensive. It is the case that most Harlow tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Harlow you should investigate if your lease has between seventy and ninety years left. There are good reasons why a Harlow flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Harlow with more than one hundred years unexpired on the lease are sometimes 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Yorkshire 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. |
The conveyancers that we work with procure Harlow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing protracted correspondence with the landlord of her studio apartment in Harlow, Sarah started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction was concluded in September 2007. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were called by Mr and Mrs. O Hill , who bought a first floor apartment in Harlow in September 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar flats in Harlow with a long lease were valued around £285,000. The average ground rent payable was £55 collected quarterly. The lease expired on 6 November 2105. Considering the 80 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Mr and Mrs. D Díaz acquired a one bedroom apartment in Harlow in July 1999. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Harlow with a long lease were worth £200,800. The average amount of ground rent was £65 invoiced per annum. The lease came to a finish in 2085. Having 60 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of fees.