There is no doubt about it a leasehold flat or house in Great Harwood is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Great Harwood will qualify for this right; nevertheless a conveyancer will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Skipton Building Society | |
| TSB | |
| Virgin |
The lawyers that we work with handle 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.
Toby owned a 2 bedroom flat in Great Harwood being sold with a lease of a little over 59 years left. Toby informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Toby to exercise his statutory right. Toby obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Summer we were phoned by Dr Kian Lee , who owned a garden flat in Great Harwood in October 1998. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative homes in Great Harwood with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 collected annually. The lease concluded on 27 July 2098. Having 72 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Mr and Mrs. D Watson was assigned a lease of a garden apartment in Great Harwood in March 2002. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar premises in Great Harwood with a long lease were valued around £261,600. The average ground rent payable was £60 invoiced annually. The lease finished in 2078. Taking into account 52 years left we calculated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus costs.