Harlech leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Harlech will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Santander | |
| Virgin | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Harlech,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Harlech valuers.
Half a year ago Jackson, started to get close to the eighty-year threshold with the lease on his basement apartment in Harlech. In buying his flat two decades ago, the unexpired term was of no concern. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Jackson was able to extend his lease just ahead of time in June. Jackson and the freeholder via the managing agents subsequently agreed on an amount of £5,000 . If the lease had gone to less than eighty years, the price would have become more costly by at least £1,100.
Last Spring we were phoned by Mr and Mrs. C Ramírez , who completed a garden flat in Harlech in July 2001. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable flats in Harlech with 100 year plus lease were valued around £248,000. The mid-range ground rent payable was £65 collected per annum. The lease expired in 2089. Having 63 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 not including professional charges.
Last Christmas we were e-mailed by Mr Finn Howard , who moved into a newly refurbished flat in Harlech in September 2000. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Harlech with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed annually. The lease terminated in 2078. Considering the 52 years unexpired we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of legals.