The value of Great Harwood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties in Great Harwood 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 to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Great Harwood 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 lawyer we work with provide it.
Last Summer Kyle, started to get close to the eighty-year mark with the lease on his studio apartment in Great Harwood. In buying his flat twenty years ago, the length of the lease was of no interest. Fortunately, he recognised he would imminently be paying an escalated premium for Extending the lease. Kyle arranged for a lease extension just under the wire last March. Kyle and the landlord in the end settled on the final figure of £6,000 . If the lease had descended to less than eighty years, the price would have gone up by a minimum £975.
Last Christmas we were approach by Mr and Mrs. R Stewart , who bought a newly refurbished apartment in Great Harwood in August 2010. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Great Harwood with an extended lease were worth £183,600. The mid-range ground rent payable was £65 invoiced monthly. The lease ended on 3 March 2083. Having 57 years left we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.
In 2014 we were called by Mr and Mrs. R Reed who, having completed a garden apartment in Great Harwood in June 2005. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar flats in Great Harwood with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 collected yearly. The lease concluded on 20 September 2094. Having 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.