Harleston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Harleston enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Harleston you must investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Harleston with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancing solicitors that we work with handle Harleston 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 conveyancing solicitor we work with provide it.
In recent months Hunter, came perilously close to the eighty-year mark with the lease on his one bedroom flat in Harleston. In buying his home twenty years previously, the unexpired term was of little bearing. Thankfully, he noticed he needed to take action soon on a lease extension. Hunter extended the lease just under the wire in April. Hunter and the freeholder eventually settled on sum of £5,000 . If the lease had fallen lower than eighty years, the figure would have escalated by at least £850.
In 2009 we were called by Mr and Mrs. S Baker who, having bought a purpose-built apartment in Harleston in January 2004. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Similar homes in Harleston with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease ended in 2093. Having 68 years outstanding we approximated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus costs.
Last year we were approach by Mr and Mrs. D Morris , who acquired a first floor flat in Harleston in May 2005. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparative premises in Harleston with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease elapsed on 12 June 2104. Taking into account 79 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.