Unfortunately that a Harrold residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Harrold property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Most leasehold owners in Harrold will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Harrold with in excess of 100 years unexpired on the lease are sometimes 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 freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Harrold,the lease extension lawyers that we work with will always be willing 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.
Theo owned a conversion apartment in Harrold on the market with a lease of just over 72 years unexpired. Theo informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
Last Christmas we were contacted by Mrs Y Moore , who owned a basement flat in Harrold in August 1999. The question was if we could estimate the price would be to prolong the lease by 90 years. Similar residencies in Harrold with an extended lease were worth £270,000. The average ground rent payable was £55 invoiced yearly. The lease expired on 10 May 2102. Having 76 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
Last Spring we were e-mailed by Dr Archie Pérez , who took over the lease of a one bedroom flat in Harrold in April 1999. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparative flats in Harrold with an extended lease were valued around £176,200. The average ground rent payable was £65 invoiced monthly. The lease concluded on 6 February 2082. Given that there were 56 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 not including professional charges.