Harlech leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Harlech enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Harlech you really ought to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, 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. |
| 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. |
Using our service gives you enhanced control over the value of your Harlech leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Riley, came critically near to the eighty-year mark with the lease on his two bedroom flat in Harlech. Having purchased his property two decades ago, the lease term was of minimal concern. by good luck, he noticed he needed to take steps soon on Extending the lease. Riley was able to extend his lease at the eleventh hour last September. Riley and the freeholder via the management company ultimately agreed on a premium of £5,500 . If the lease had dropped lower than eighty years, the sum would have gone up by at least £950.
Dr R Ward acquired a basement flat in Harlech in April 1999. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Harlech with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 invoiced monthly. The lease finished on 24 January 2077. Having 51 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.
Mrs E Moreau purchased a ground floor apartment in Harlech in November 2002. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical properties in Harlech with an extended lease were worth £285,000. The mid-range ground rent payable was £45 billed per annum. The lease terminated in 2097. Given that there were 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.