The only way is down when it comes to Harold Hill lease terms. Harold Hill leaseholds that have a remaining term lower than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will increase.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Using our service will provide you better 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 want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Archie was the the leasehold proprietor of a high value apartment in Harold Hill on the market with a lease of a little over 59 years left. Archie on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Archie to exercise his statutory right. Archie obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
In 2014 we were e-mailed by Mr and Mrs. M Taylor who, having purchased a garden apartment in Harold Hill in April 2002. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Harold Hill with 100 year plus lease were worth £256,600. The average amount of ground rent was £60 invoiced per annum. The lease ended on 19 March 2078. Taking into account 52 years left we calculated the compensation to the freeholder for the lease extension to be between £41,800 and £48,400 plus fees.
An example of a Lease Extension case 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 affected 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.