When it comes to domestic leasehold premises in Harold Hill, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years remaining. Leasehold owners in Harold Hill with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has fewer than eighty years outstanding, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Harold Hill with in excess of 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Godiva Mortgages | 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. |
| 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 lawyers that we work with handle Harold Hill 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.
In 2014 Leon, came dangerously near to the eighty-year mark with the lease on his purpose- built flat in Harold Hill. Having bought his flat two decades ago, the unexpired term was of minimal bearing. Fortunately, he noticed he needed to take steps soon on Extending the lease. Leon was able to extend his lease at the eleventh hour last June. Leon and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,100.
Last Summer we were e-mailed by Ms G Rivera , who was assigned a lease of a first floor apartment in Harold Hill in July 1997. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable residencies in Harold Hill with 100 year plus lease were valued about £210,600. The average amount of ground rent was £45 billed yearly. The lease ended on 17 March 2087. Taking into account 62 years as a residual term we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus professional charges.
An example of a Lease Extension decision for a Harold Hill flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case was in relation to 1 flat. The unexpired residue of the current lease was 57.5 years.