Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Harlow. Inevitably, the length of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Harlow have the right to extend the lease for a further ninety years under legislation. Do give due consideration before putting off your Harlow lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Henry was the the leasehold owner of a high value flat in Harlow being marketed with a lease of fraction over sixty years remaining. Henry informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Henry to invoke his statutory right. Henry procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
In 2009 we were e-mailed by Mr G Morel who, having moved into a recently refurbished apartment in Harlow in June 2008. The question was if we could estimate the premium would be for a 90 year extension to my lease. Identical homes in Harlow with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected monthly. The lease terminated on 1 January 2084. Having 60 years as a residual term we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus expenses.
Last Spring we were phoned by Dr Chelsea Rogers , who took over the lease of a recently refurbished apartment in Harlow in June 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Harlow with a long lease were worth £255,000. The average ground rent payable was £50 invoiced monthly. The lease expired on 24 January 2095. Considering the 71 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.