The closer a residential lease in Harbury nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years left 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 main logic behind why you should consider extending sooner than later. The majority of flat owners in Harbury will meet the qualifying criteria; nevertheless a lawyer should be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Harbury with over 100 years unexpired 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with procure 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.
Off the back of unsuccessful negotiations with the freeholder of her purpose-built flat in Harbury, Georgia initiated the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work was concluded in February 2011. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were e-mailed by Mr Freddie Garcia who, having was assigned a lease of a one bedroom flat in Harbury in October 2008. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable premises in Harbury with an extended lease were in the region of £208,200. The average amount of ground rent was £65 collected monthly. The lease ran out in 2086. Having 61 years unexpired we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including fees.
In 2011 we were approached by Mr and Mrs. P Rose who, having moved into a one bedroom flat in Harbury in August 2012. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative homes in Harbury with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded in 2097. Taking into account 72 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.