The nearer a domestic lease in Harpenden nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Harpenden will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Harpenden with over one hundred years outstanding 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a freeholder in Harpenden,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Harpenden valuers.
Following lengthy correspondence with the landlord of her two bedroom flat in Harpenden, Naomi initiated the lease extension process just as her lease was approaching the critical 80-year deadline. The transaction was finalised in April 2005. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were approach by Mr and Mrs. P Martinez , who was assigned a lease of a basement flat in Harpenden in May 2002. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar properties in Harpenden with an extended lease were valued about £250,400. The average amount of ground rent was £65 collected yearly. The lease expired on 21 May 2089. Having 64 years left we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 not including fees.
Last Winter we were phoned by Mr and Mrs. V Thomas , who purchased a basement apartment in Harpenden in June 2005. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Harpenden with a long lease were in the region of £189,000. The mid-range amount of ground rent was £55 collected monthly. The lease finished in 2078. Taking into account 53 years remaining we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including fees.