Harold Wood leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Harold Wood residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Harold Wood you should see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Harold Wood can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Harold Wood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy owned a high value flat in Harold Wood being sold with a lease of a few days over fifty eight years outstanding. Teddy informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last Spring we were phoned by Mr and Mrs. F André , who owned a one bedroom apartment in Harold Wood in November 2007. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical properties in Harold Wood with an extended lease were in the region of £261,600. The average amount of ground rent was £60 billed annually. The lease elapsed on 8 March 2077. Considering the 52 years outstanding we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal 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 unexpired term as at the valuation date was 57.5 years.