Chances are that if you own a flat in Harrold you actually own a long leasehold interest over your property
Leasehold properties in Harrold with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Harrold can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Harrold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Elijah was the the leasehold owner of a high value apartment in Harrold on the market with a lease of a few days over sixty years remaining. Elijah on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last May we were contacted by Dr Nathan André , who bought a first floor apartment in Harrold in June 2003. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable properties in Harrold with an extended lease were worth £256,600. The mid-range amount of ground rent was £60 billed yearly. The lease lapsed on 4 February 2078. Taking into account 52 years outstanding we approximated the premium to the freeholder for the lease extension to be within £41,800 and £48,400 not including expenses.
In 2012 we were approached by Dr F Howard who, having bought a one bedroom apartment in Harrold in November 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Harrold with a long lease were worth £218,000. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded on 7 May 2089. Given that there were 63 years outstanding we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus fees.