The re-sale value of a leasehold property in Harpenden depends on how long the lease has remaining. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised in advance of the eighty year cut off point. Statute entitles Harpenden qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Harpenden with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Harpenden can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Harpenden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kian was the the leasehold proprietor of a studio apartment in Harpenden being marketed with a lease of a little over sixty years left. Kian informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Kian to exercise his statutory right. Kian obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last month we were contacted by Ms V Gómez , who purchased a newly refurbished apartment in Harpenden in October 1995. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Identical flats in Harpenden with a long lease were in the region of £285,000. The average ground rent payable was £45 collected per annum. The lease ran out on 19 April 2098. Having 72 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
In 2012 we were e-mailed by Ms S Torres who, having moved into a garden flat in Harpenden in October 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Similar premises in Harpenden with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish on 25 May 2087. Given that there were 61 years unexpired we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus legals.