Harrold leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Harrold enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Harrold you must investigate if your lease has between seventy and 90 years left. There are good reasons why a Harrold flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you increased control over the value of your Harrold leasehold, as your property will be more valuable and marketable in terms of lease length should you want 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.
After protracted discussions with the freeholder of her first floor apartment in Harrold, Phoebe initiated the lease extension process just as her lease was approaching the all-important eighty-year deadline. The lease extension was finalised in February 2012. The freeholder’s charges were restricted to under 700 pounds.
Mrs B Morel was assigned a lease of a ground floor flat in Harrold in September 1997. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparative premises in Harrold with an extended lease were in the region of £183,600. The average ground rent payable was £65 invoiced annually. The lease termination date was on 21 October 2083. Considering the 57 years remaining we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
In 2014 we were called by Mr and Mrs. S Sharif who, having bought a studio flat in Harrold in August 1997. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Harrold with an extended lease were in the region of £245,000. The average ground rent payable was £45 invoiced every twelve months. The lease came to a finish in 2094. Considering the 68 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.