Harold Wood leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Harold Wood will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Harold Wood with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Harold Wood,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Harold Wood valuers.
Off the back of unsuccessful negotiations with the freeholder of her purpose-built flat in Harold Wood, Megan started the lease extension process as the 80 year threshold was rapidly coming. The lease extension was concluded in April 2013. The landlord’s charges were restricted to about six hundred GBP.
Mr Daniel Kelly was assigned a lease of a purpose-built flat in Harold Wood in March 2003. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in Harold Wood with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease finished on 19 March 2085. Taking into account 59 years left we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including professional charges.
An example of a Lease Extension case 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 unexpired term was 57.5 years.