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 gets more expensive. Legislation has been in place for sometime now which permits qualifying Harrold residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Harrold you would be well advised to check if your lease has between seventy and ninety years left. There are good reasons why a Harrold flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| The Mortgage Works |
Lease extensions in Harrold can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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.
Ali was the the leasehold owner of a 2 bedroom apartment in Harrold on the market with a lease of fraction over 72 years outstanding. Ali informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Dr L Hill acquired a purpose-built flat in Harrold in November 2006. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable homes in Harrold with 100 year plus lease were valued about £260,000. The average amount of ground rent was £50 billed quarterly. The lease terminated on 13 April 2098. Taking into account 72 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
Mr N David completed a one bedroom apartment in Harrold in October 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Identical residencies in Harrold with 100 year plus lease were worth £256,600. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2078. Considering the 52 years outstanding we approximated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 plus costs.