On the balance of probabilities if you own a flat in Harrold you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire 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. |
The conveyancers that we work with undertake Harrold 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 conveyancer we work with provide it.
Last year Kian, came dangerously near to the 80-year mark with the lease on his basement apartment in Harrold. Having bought his property two decades ago, the unexpired term was of no relevance. by good luck, he noticed he needed to take steps soon on a lease extension. Kian extended the lease at the eleventh hour in May. Kian and the landlord subsequently agreed on the final figure of £6,000 . If he not met the deadline, the amount would have gone up by at least £900.
Last June we were contacted by Mrs Daisy Stewart , who moved into a one bedroom apartment in Harrold in February 2008. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Comparable properties in Harrold with an extended lease were valued about £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed on 16 October 2103. Given that there were 78 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.
Last Christmas we were approach by Mrs A Norbert , who was assigned a lease of a first floor apartment in Harrold in November 2012. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar premises in Harrold with 100 year plus lease were worth £186,000. The average ground rent payable was £65 collected yearly. The lease finished on 26 June 2083. Taking into account 58 years as a residual term we approximated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including professional charges.