With a domestic leasehold premises in Harlech, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years left. Leasehold owners in Harlech with a lease approaching 81 years unexpired should seriously think of extending it without delay. When a lease has under 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Harlech can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Harlech lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the landlord of her two bedroom flat in Harlech, Rachael started the lease extension process just as the lease was nearing the crucial eighty-year threshold. The transaction completed in September 2012. The landlord’s costs were negotiated to a tad over 700 GBP.
Dr G Taylor bought a first floor flat in Harlech in August 1997. We are asked if we could approximate the price would be to extend the lease by ninety years. Similar residencies in Harlech with an extended lease were valued around £206,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease termination date was on 23 June 2082. Considering the 56 years left we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus professional charges.
Mr and Mrs. N Petit owned a recently refurbished flat in Harlech in August 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparable flats in Harlech with a long lease were worth £300,000. The average ground rent payable was £50 invoiced quarterly. The lease terminated on 25 November 2102. Given that there were 76 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.