The re-sale value of a leasehold property in Harpenden is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be concluded well before the 80 year cut off point. Current legislation enables Harpenden qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of ninety years. The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Harpenden with over 100 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Harpenden,the lease extension lawyers that we work with will always be prepared 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.
18 months ago Harry, came seriously close to the eighty-year mark with the lease on his first floor flat in Harpenden. Having purchased his home two decades ago, the length of the lease was of little importance. Luckily, he realised he needed to take action soon on Extending the lease. Harry was able to extend his lease at the eleventh hour in September. Harry and the freeholder subsequently settled on sum of £5,500 . If he had missed the deadline, the figure would have increased by a minimum £875.
Last Spring we were called by Mrs Lydia Bennett , who completed a newly refurbished flat in Harpenden in May 2004. We are asked if we could approximate the price would be to prolong the lease by 90 years. Similar flats in Harpenden with a long lease were worth £295,000. The average amount of ground rent was £45 billed per annum. The lease concluded in 2100. Having 74 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Winter we were called by Mr Aaron Turner , who was assigned a lease of a garden apartment in Harpenden in January 2010. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable homes in Harpenden with a long lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed monthly. The lease ran out on 13 September 2089. Considering the 63 years outstanding we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus expenses.