The nearer a domestic lease in Harbury gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Harbury will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible for a lease extension. 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 more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Harbury can be a difficult process. We recommend you get guidance 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 in-depth market knowledge procuring Harbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Milo, started to get close to the 80-year threshold with the lease on his first floor flat in Harbury. Having purchased his home two decades ago, the length of the lease was of minimal importance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Milo arranged for a lease extension at the eleventh hour last August. Milo and the freeholder in the end agreed on sum of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £1,100.
Last Summer we were approach by Dr Niamh Williams , who owned a first floor flat in Harbury in March 2007. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparable premises in Harbury with a long lease were in the region of £290,000. The mid-range ground rent payable was £60 billed annually. The lease expiry date was in 2105. Having 80 years outstanding we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.
Last year we were called by Mr A González , who acquired a garden flat in Harbury in March 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable homes in Harbury with 100 year plus lease were valued about £200,800. The average amount of ground rent was £65 billed yearly. The lease concluded on 10 June 2085. Taking into account 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus legals.