Harold Park leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Harold Park residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Harold Park you would be well advised to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Harold Park flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Harold Park 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.
During the course of the last few months Connor, came very close to the 80-year threshold with the lease on his leasehold apartment in Harold Park. In buying his property two decades ago, the length of the lease was of minimal importance. Thankfully, he noticed he needed to take steps soon on a lease extension. Connor was able to extend his lease at the eleventh hour in September. Connor and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If the lease had slid to less than eighty years, the figure would have increased by a minimum £1,100.
Mr Nathan Flores was assigned a lease of a recently refurbished apartment in Harold Park in October 2004. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical residencies in Harold Park with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 collected yearly. The lease elapsed in 2081. Considering the 55 years outstanding we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including legals.
An example of a Lease Extension matter before the tribunal for a Harold Park property 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 remaining number of years on the lease was 57.5 years.