Unfortunately that a Harold Park residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Harold Park property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Harold Park will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Harold Park with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Harold Park leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Kai, came precariously close to the 80-year threshold with the lease on his ground floor flat in Harold Park. Having bought his property two decades ago, the lease term was of little interest. Luckily, he realised he needed to take steps soon on a lease extension. Kai extended the lease just ahead of time last April. Kai and the freeholder via the managing agents eventually settled on an amount of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,150.
Mr Rory Bonnet owned a newly refurbished flat in Harold Park in June 2007. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative homes in Harold Park with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ran out on 6 February 2105. Taking into account 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired term as at the valuation date was 57.5 years.