With a long leasehold property in Great Harwood, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years remaining. Residents in Great Harwood with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has below 80 years outstanding, under the relevant legislation the freeholder can calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Great Harwood with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Great Harwood leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Thomas was the the leasehold proprietor of a 2 bedroom flat in Great Harwood being sold with a lease of fraction over 59 years unexpired. Thomas on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Thomas to exercise his statutory right. Thomas obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were approach by Dr Alicia Moreau , who took over the lease of a one bedroom flat in Great Harwood in June 1995. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative homes in Great Harwood with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease finished in 2076. Having 50 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus costs.
In 2011 we were contacted by Dr Kai Peterson who, having owned a ground floor flat in Great Harwood in June 2001. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Identical homes in Great Harwood with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 collected every twelve months. The lease lapsed in 2087. Given that there were 61 years left we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus legals.