It’s an underpublicised certainty that a East Harling residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the East Harling property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra 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 conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in East Harling can be a difficult process. We recommend you secure 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 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 October Thomas, came very close to the eighty-year mark with the lease on his one bedroom apartment in East Harling. In buying his home 18 years previously, the length of the lease was of little concern. by good luck, he recognised he needed to take steps soon on a lease extension. Thomas arranged for a lease extension just under the wire in September. Thomas and the landlord ultimately settled on an amount of £6,000 . If the lease had dropped lower than eighty years, the premium would have gone up by a minimum £950.
Last Autumn we were approach by Mr and Mrs. L Moore , who bought a studio apartment in East Harling in October 2003. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparative flats in East Harling with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 billed per annum. The lease lapsed on 3 July 2089. Having 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 plus costs.
Mr and Mrs. F Allen acquired a one bedroom flat in East Harling in November 1997. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable premises in East Harling with a long lease were valued around £270,000. The average amount of ground rent was £55 collected every twelve months. The lease terminated in 2100. Taking into account 74 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.