The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Harold Wood may extend the lease for a further ninety years in accordance with statute. Please give careful consideration before delaying your Harold Wood lease extension. Postponing that expense today simply escalates the amount you will ultimately have to pay to extend the lease.
Leasehold properties in Harold Wood with over one hundred years outstanding 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Harrison was the the leasehold owner of a studio flat in Harold Wood on the market with a lease of just over 72 years left. Harrison on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Harrison to invoke his statutory right. Harrison procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2009 we were e-mailed by Mrs Ashleigh Cooper who, having completed a basement apartment in Harold Wood in January 1995. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Similar flats in Harold Wood with an extended lease were in the region of £264,000. The average amount of ground rent was £60 collected every twelve months. The lease finished in 2079. Having 53 years remaining we estimated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including expenses.
An example of a Lease Extension decision for a Harold Wood 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 number of years remaining on the existing lease(s) was 57.5 years.