Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Harold Park. Inevitably, the length of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying leaseholders in Harold Park have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. You should give careful attention before putting off your Harold Park lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Harold Park with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Harold Park leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her garden flat in Harold Park, Courtney commenced the lease extension process as the 80 year threshold was quickly approaching. The lease extension was concluded in March 2005. The freeholder’s fees were kept to an absolute minimum.
Mrs M Lambert owned a one bedroom apartment in Harold Park in June 2004. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative premises in Harold Park with an extended lease were worth £240,600. The average ground rent payable was £60 collected monthly. The lease came to a finish in 2087. Given that there were 62 years outstanding we calculated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.
An example of a Lease Extension decision for a Harold Park premises 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 unexpired residue of the current lease was 57.5 years.