When it comes to domestic leasehold premises in Harold Wood, 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. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years remaining. Anyone in Harold Wood with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has less than 80 years remaining, under the current Act the landlord can calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Harold Wood with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 increased control over the value of your Harold Wood leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her garden apartment in Harold Wood, Isobel commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The lease extension completed in March 2010. The freeholder’s costs were negotiated to slightly above 450 pounds.
Ms Morgan Flores purchased a one bedroom flat in Harold Wood in July 2007. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical flats in Harold Wood with 100 year plus lease were valued around £290,000. The mid-range amount of ground rent was £60 collected per annum. The lease came to a finish in 2106. Taking into account 80 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.
An example of a Lease Extension decision for a Harold Wood 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 remaining number of years on the lease was 57.5 years.