Unfortunately that a East Harling residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the East Harling property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in East Harling will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in East Harling with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 guidance from a lawyer 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 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.
Last year Theo, came dangerously close to the 80-year threshold with the lease on his ground floor flat in East Harling. Having purchased his property two decades ago, the length of the lease was of no significance. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Theo was able to extend his lease at the eleventh hour last July. Theo and the landlord subsequently settled on the final figure of £5,000 . If the lease had descended to less than 80 years, the amount would have gone up by a minimum £925.
Dr W López moved into a garden flat in East Harling in July 2006. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in East Harling with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease elapsed in 2101. Having 75 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Last Spring we were called by Mr and Mrs. N Harris , who completed a one bedroom apartment in East Harling in August 1995. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical properties in East Harling with an extended lease were worth £173,800. The average amount of ground rent was £65 billed quarterly. The lease terminated in 2081. Having 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.