Harold Wood leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Harold Wood will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and steps to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 lawyers that we work with procure Harold Wood 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.
After unsuccessful discussions with the landlord of her leasehold flat in Harold Wood, Paige commenced the lease extension process as the eighty year threshold was rapidly approaching. The transaction was concluded in January 2014. The landlord’s fees were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. S Moore who, having completed a garden flat in Harold Wood in April 2009. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable flats in Harold Wood with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £55 collected yearly. The lease expired on 19 October 2101. Considering the 77 years outstanding we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.
An example of a Lease Extension decision for a Harold Wood premises 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 number of years remaining on the existing lease(s) was 57.5 years.