For anyone whose Harrold home is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold premises in Harrold with in excess of one hundred years unexpired 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Harrold leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Oscar, started to get close to the 80-year mark with the lease on his purpose- built apartment in Harrold. Having bought his property 19 years ago, the length of the lease was of no relevance. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Oscar extended the lease just ahead of time last April. Oscar and the freeholder via the management company eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £850.
Mr and Mrs. P Evans purchased a first floor apartment in Harrold in February 2005. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparable residencies in Harrold with a long lease were in the region of £186,000. The average amount of ground rent was £65 billed per annum. The lease lapsed in 2084. Having 58 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including legals.
Last Winter we were approach by Mr and Mrs. U Moore , who owned a first floor flat in Harrold in January 2003. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar premises in Harrold with an extended lease were worth £250,000. The average amount of ground rent was £50 collected yearly. The lease came to a finish in 2095. Taking into account 69 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.