South Harrow leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in South Harrow will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in South Harrow with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with undertake South Harrow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Leo was the the leasehold owner of a 2 bedroom apartment in South Harrow being sold with a lease of fraction over sixty years unexpired. Leo on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Last Autumn we were phoned by Mrs Megan Moore , who acquired a ground floor apartment in South Harrow in April 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in South Harrow with a long lease were valued about £250,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed in 2094. Taking into account 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
An example of a Lease Extension matter before the tribunal 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 was in relation to 1 flat. The unexpired term was 79 years.