With a domestic leasehold premises in South Harrow, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years remaining. Residents in South Harrow with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has under 80 years outstanding, under the current Act the landlord can calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in South Harrow can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 dealing with South Harrow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful correspondence with the landlord of her basement apartment in South Harrow, Alisha initiated the lease extension process just as her lease was nearing the critical eighty-year deadline. The legal work was finalised in September 2009. The landlord’s fees were negotiated to below 500 GBP.
In 2011 we were called by Mr C Green who, having acquired a garden flat in South Harrow in September 1996. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in South Harrow with a long lease were valued around £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed in 2082. Given that there were 56 years left we calculated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of fees.
An example of a Lease Extension case for a South Harrow residence is GFF 1 Holyrood Avenue in May 2014. The Tenant wished to acquire a new (extended) lease and applied to the Willesden County Court who granted a vesting order on 20* March2013. The Tribunal decied that the premium to be paid was £9,062 This case was in relation to 1 flat. The remaining number of years on the lease was 79 years.