As the the remaining lease term of a Harrold domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Harrold will qualify for this right; however a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Harrold,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Harrold valuers.
After unsuccessful discussions with the landlord of her garden apartment in Harrold, Yasmin commenced the lease extension process as the eighty year mark was quickly approaching. The transaction was finalised in April 2010. The landlord’s fees were negotiated to a tad over 600 GBP.
Last month we were phoned by Ms Francesca Collins , who was assigned a lease of a purpose-built apartment in Harrold in January 2008. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative residencies in Harrold with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected yearly. The lease expiry date was on 24 January 2099. Having 74 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2014 we were called by Mr Connor Michel who, having owned a one bedroom flat in Harrold in September 2006. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative premises in Harrold with 100 year plus lease were valued around £166,400. The average ground rent payable was £60 invoiced every twelve months. The lease finished on 16 September 2079. Taking into account 54 years unexpired we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of legals.