The market value of a leasehold property in Harlow is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed in advance of the eighty year threshold. Current legislation entitles Harlow qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Harlow with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 Harlow leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the landlord of her studio apartment in Harlow, Abbie initiated the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction was finalised in May 2011. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were contacted by Mrs Lydia Moore who, having acquired a basement flat in Harlow in May 1997. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable properties in Harlow with a long lease were valued about £265,000. The mid-range amount of ground rent was £50 collected quarterly. The lease elapsed on 12 May 2100. Given that there were 74 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2013 we were phoned by Dr Lewis Edwards who, having was assigned a lease of a studio flat in Harlow in June 1999. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar homes in Harlow with an extended lease were worth £166,400. The average ground rent payable was £60 collected monthly. The lease end date was on 1 October 2080. Taking into account 54 years outstanding we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.