Harlow leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Harlow will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Harlow 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 conveyancer we work with provide it.
Subsequent to lengthy correspondence with the freeholder of her purpose-built flat in Harlow, Freya started the lease extension process just as her lease was nearing the all-important eighty-year deadline. The lease extension completed in June 2005. The freeholder’s costs were restricted to about 500 GBP.
In 2011 we were approached by Ms Imogen Jones who, having took over the lease of a basement flat in Harlow in January 2007. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar premises in Harlow with an extended lease were valued about £242,600. The average amount of ground rent was £45 billed annually. The lease finished in 2092. Considering the 67 years unexpired we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus legals.
Last Summer we were phoned by Mr and Mrs. I Ricardo , who owned a basement apartment in Harlow in February 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative flats in Harlow with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out in 2103. Considering the 78 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.