Unfortunately that a Harpenden residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Harpenden property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term drops below eighty 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. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Harpenden will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Harpenden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Dylan, came critically close to the 80-year threshold with the lease on his ground floor apartment in Harpenden. In buying his property two decades ago, the lease term was of little bearing. Luckily, he noticed he needed to take action soon on Extending the lease. Dylan arranged for a lease extension at the eleventh hour last May. Dylan and the freeholder via the management company ultimately agreed on sum of £5,500 . If the lease had slipped below 80 years, the figure would have increased by at least £1,150.
Last Summer we were e-mailed by Dr G François , who acquired a studio flat in Harpenden in April 2002. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable premises in Harpenden with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected every twelve months. The lease terminated in 2102. Considering the 76 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
Last September we were called by Mr and Mrs. I Collins , who owned a ground floor flat in Harpenden in January 2003. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative properties in Harpenden with 100 year plus lease were in the region of £257,800. The average amount of ground rent was £65 collected annually. The lease lapsed on 16 July 2091. Considering the 65 years unexpired we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including fees.