East Harling leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in East Harling will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in East Harling with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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; |
| 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. |
Lease extensions in East Harling can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 in-depth market knowledge dealing with East Harling lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Thomas was the the leasehold owner of a 2 bedroom flat in East Harling being sold with a lease of a little over 61 years left. Thomas informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Thomas to exercise his statutory right. Thomas obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Mr and Mrs. D Scott owned a garden flat in East Harling in May 2008. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar premises in East Harling with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 billed monthly. The lease concluded on 3 February 2087. Given that there were 62 years remaining we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including costs.
Ms Sophie Thomas was assigned a lease of a studio flat in East Harling in April 2005. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical properties in East Harling with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired on 27 September 2098. Given that there were 73 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.