Harold Wood leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Harold Wood will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not qualify. There are prescribed deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Harold Wood with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Harold Wood,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Harold Wood valuers.
Following lengthy correspondence with the landlord of her studio flat in Harold Wood, Lily started the lease extension process as the eighty year threshold was quickly coming. The transaction completed in January 2008. The freeholder’s fees were negotiated to under 450 pounds.
Dr Elizabeth Bailey moved into a studio flat in Harold Wood in May 2009. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Harold Wood with a long lease were worth £260,000. The average ground rent payable was £50 collected quarterly. The lease elapsed in 2098. Given that there were 72 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
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 related to 1 flat. The unexpired residue of the current lease was 57.5 years.