South Harrow leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying South Harrow residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in South Harrow you should investigate if your lease has between seventy and ninety years left. There are good reasons why a South Harrow leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in South Harrow,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Harrow valuers.
Two years ago Kyle, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in South Harrow. In buying his home two decades ago, the lease term was of no interest. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Kyle was able to extend his lease at the eleventh hour last May. Kyle and the freeholder via the managing agents in the end agreed on a premium of £6,000 . If the lease had gone below eighty years, the price would have become more exhorbitant by a minimum £1,025.
In 2012 we were contacted by Ms M Turner who, having was assigned a lease of a one bedroom apartment in South Harrow in July 2001. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Similar premises in South Harrow with an extended lease were in the region of £275,000. The average amount of ground rent was £55 invoiced per annum. The lease ended in 2102. Considering the 77 years outstanding we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.
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 affected 1 flat. The unexpired residue of the current lease was 79 years.