There is no doubt about it a leasehold property in Harold Park is a wasting asset as a result of the shortening lease. If the residual term has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Harold Park will qualify for this right; nevertheless a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Harold Park leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her garden flat in Harold Park, Kayleigh initiated the lease extension process as the 80 year deadline was quickly advancing. The lease extension was finalised in January 2009. The landlord’s costs were kept to an absolute minimum.
In 2010 we were e-mailed by Mr Ollie Mercier who, having purchased a one bedroom flat in Harold Park in January 2012. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Harold Park with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 invoiced every twelve months. The lease came to a finish in 2077. Considering the 53 years as a residual term we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
An example of a Lease Extension case for a Harold Park residence 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 lease term was 57.5 years.