The value of Harlington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than 80 years
Leasehold premises in Harlington with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
The conveyancers that we work with procure Harlington 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.
Two years ago Nathan, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Harlington. In buying his home two decades ago, the lease term was of little interest. As luck would have it, he recognised he would imminently be paying an inflated amount for a lease extension. Nathan was able to extend his lease just ahead of time in June. Nathan and the landlord who owned the flat above in the end settled on sum of £5,000 . If he had missed the deadline, the figure would have escalated by at least £950.
In 2011 we were e-mailed by Dr Y Walker who, having purchased a one bedroom apartment in Harlington in October 2003. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar homes in Harlington with a long lease were valued about £198,400. The mid-range ground rent payable was £65 collected per annum. The lease came to a finish in 2080. Taking into account 59 years left we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including costs.
An example of a Freehold Enfranchisement decision for a Harlington flat is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The unexpired term was 69 years.