Harlow leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Harlow will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Harlow with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Harlow can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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.
Last October Liam, started to get near to the eighty-year threshold with the lease on his studio apartment in Harlow. Having bought his home two decades ago, the unexpired term was of little bearing. Fortunately, he noticed he would imminently be paying an escalated premium for Extending the lease. Liam arranged for a lease extension just under the wire last August. Liam and the freeholder in the end settled on an amount of £5,500 . If he not met the deadline, the price would have become more exhorbitant by a minimum £925.
Last November we were called by Mrs Eleanor Phillips , who owned a purpose-built apartment in Harlow in July 1995. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative properties in Harlow with 100 year plus lease were valued around £220,400. The average ground rent payable was £45 billed yearly. The lease came to a finish on 26 May 2090. Taking into account 64 years left we calculated the premium to the landlord for the lease extension to be within £16,200 and £18,600 not including fees.
In 2009 we were called by Mr and Mrs. K Torres who, having purchased a studio flat in Harlow in July 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Harlow with an extended lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease lapsed on 13 April 2101. Given that there were 75 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.