Harold Hill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Harold Hill enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Harold Hill you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Harold Hill leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Callum, started to get close to the 80-year threshold with the lease on his purpose- built flat in Harold Hill. In buying his property 18 years previously, the length of the lease was of minimal concern. Luckily, he recognised he would imminently be paying an escalated premium for a lease extension. Callum extended the lease just in the nick of time last July. Callum and the freeholder ultimately settled on sum of £5,500 . If the lease had slipped below 80 years, the premium would have escalated by at least £1,050.
In 2013 we were contacted by Ms Kelsey Scott who, having moved into a first floor apartment in Harold Hill in January 2006. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Harold Hill with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 collected per annum. The lease expired in 2082. Taking into account 56 years as a residual term we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of legals.
An example of a Lease Extension decision for a Harold Hill residence is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The unexpired term as at the valuation date was 57.5 years.