Harold Wood leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Harold Wood will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Harold Wood leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Eliot, started to get near to the 80-year threshold with the lease on his one bedroom flat in Harold Wood. Having bought his home two decades ago, the lease term was of little relevance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Eliot was able to extend his lease just ahead of time last March. Eliot and the freeholder via the managing agents eventually agreed on sum of £5,500 . If he failed to meet the deadline, the sum would have increased by a minimum £1,000.
Last Christmas we were phoned by Ms Y Moore , who owned a garden apartment in Harold Wood in November 2003. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Harold Wood with 100 year plus lease were worth £242,600. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out on 1 March 2092. Considering the 67 years unexpired we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus costs.
An example of a Lease Extension case for a Harold Wood property 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 remaining number of years on the lease was 57.5 years.