South Harrow 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 the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying South Harrow residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in South Harrow you should see if your lease has between 70 and 90 years left. There are compelling reasons why a South Harrow flat owner with a lease having around eighty years left should take action to ensure that a lease extension is actioned without delay
Leasehold properties in South Harrow with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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 South Harrow can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 a wealth of experience procuring 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.
Last year Finley, came critically close to the eighty-year threshold with the lease on his ground floor apartment in South Harrow. Having bought his flat 19 years previously, the lease term was of little interest. Fortunately, he recognised he would imminently be paying an inflated amount for Extending the lease. Finley was able to extend his lease just ahead of time in March. Finley and the freeholder ultimately settled on an amount of £5,000 . If he not met the deadline, the premium would have increased by at least £875.
Dr Poppy Sharif bought a garden apartment in South Harrow in August 1998. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Similar properties in South Harrow with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced annually. The lease elapsed in 2090. Given that there were 66 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
An example of a Lease Extension decision for a South Harrow property 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 affected 1 flat. The number of years remaining on the existing lease(s) was 79 years.