The market 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 increase significantly once the unexpired lease term is less than eighty years
Leasehold properties in Great Harwood with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Santander | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a freeholder in Great Harwood,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Harwood valuers.
Riley was the the leasehold owner of a high value flat in Great Harwood on the market with a lease of a little over 59 years unexpired. Riley informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Riley to invoke his statutory right. Riley procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
Mr Andrew Davies bought a recently refurbished flat in Great Harwood in January 2007. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Great Harwood with a long lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced annually. The lease ran out on 12 July 2086. Given that there were 60 years left we calculated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 plus costs.
In 2009 we were approached by Ms Harriet Green who, having acquired a recently refurbished flat in Great Harwood in January 2004. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable residencies in Great Harwood with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed monthly. The lease expired in 2097. Given that there were 71 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.