On the balance of probabilities where you own a flat in Harlow you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Harlow can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 Harlow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor was the the leasehold owner of a high value apartment in Harlow on the market with a lease of fraction over fifty eight years remaining. Connor on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Christmas we were contacted by Mr and Mrs. K Leroy , who completed a one bedroom apartment in Harlow in November 1999. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Identical properties in Harlow with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 invoiced annually. The lease came to a finish in 2089. Given that there were 64 years remaining we approximated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of legals.
Last Summer we were called by Mrs Jade Miller , who moved into a studio apartment in Harlow in July 1996. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative homes in Harlow with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease terminated on 3 October 2100. Having 75 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.