Harlow leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Harlow will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Harlow,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Harlow valuers.
Half a year ago Jacob, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Harlow. Having purchased his flat 18 years ago, the length of the lease was of no significance. As luck would have it, he realised he would imminently be paying way over the odds for Extending the lease. Jacob extended the lease just in the nick of time last January. Jacob and the landlord in the end settled on an amount of £5,500 . If he failed to meet the deadline, the amount would have gone up by at least £850.
Last Summer we were e-mailed by Mr and Mrs. Y Harris , who bought a basement flat in Harlow in April 2006. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparable homes in Harlow with a long lease were worth £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease ended in 2080. Having 56 years left we calculated the premium to the landlord to extend the lease to be within £29,500 and £34,000 not including professional charges.
In 2014 we were e-mailed by Mr V Collins who, having owned a one bedroom flat in Harlow in July 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Harlow with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 billed monthly. The lease terminated in 2091. Considering the 67 years outstanding we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including legals.