With a long leasehold property in South Harrow, you are actually purchasing a right to live in a property for a set period of time. Modern 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 should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years remaining. Anyone in South Harrow with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has below 80 years remaining, under the current statute the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in South Harrow with more than one hundred years unexpired 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in South Harrow can be a difficult process. We recommend you secure 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 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.
Jonathan was the the leasehold owner of a high value flat in South Harrow being sold with a lease of a few days over 59 years outstanding. Jonathan informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
Dr Danielle Lefebvre purchased a one bedroom apartment in South Harrow in June 2004. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in South Harrow with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed on 28 November 2080. Taking into account 55 years left we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.
An example of a Lease Extension decision for a South Harrow flat 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 related to 1 flat. The remaining number of years on the lease was 79 years.