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 allowing qualifying Harrold residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Harrold you really ought to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Harrold flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Harrold with in excess of one hundred 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 premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Harrold can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 in-depth market knowledge dealing with Harrold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the freeholder of her first floor apartment in Harrold, Bethan initiated the lease extension process as the eighty year threshold was rapidly approaching. The lease extension was concluded in February 2011. The landlord’s charges were restricted to a tad over 700 GBP.
Ms T Allen purchased a ground floor apartment in Harrold in October 1998. We are asked if we could approximate the price could be for a ninety year lease extension. Identical flats in Harrold with a long lease were worth £275,000. The average ground rent payable was £55 invoiced per annum. The lease came to a finish on 23 November 2103. Given that there were 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
Ms Abbie Anderson was assigned a lease of a basement flat in Harrold in June 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Harrold with an extended lease were in the region of £183,600. The average ground rent payable was £65 invoiced per annum. The lease expired on 20 June 2083. Given that there were 57 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including legals.