The value of Harbury leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years
Leasehold residencies in Harbury with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancers that we work with undertake Harbury 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.
Samuel was the the leasehold proprietor of a conversion apartment in Harbury on the market with a lease of just over fifty eight years remaining. Samuel on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Samuel to invoke his statutory right. Samuel obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were phoned by Mr and Mrs. O Brooks , who was assigned a lease of a one bedroom apartment in Harbury in September 2001. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Harbury with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded on 5 February 2099. Taking into account 73 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Mr E Petit was assigned a lease of a recently refurbished apartment in Harbury in April 2007. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Identical homes in Harbury with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 billed quarterly. The lease expired on 25 January 2079. Given that there were 53 years remaining we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus costs.