The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Harpenden can extend the lease for a further 90 years in accordance with statute. Please think carefully before delaying your Harpenden lease extension. Putting off that expense today simply escalates the premium you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you enhanced control over the value of your Harpenden leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Elijah owned a conversion apartment in Harpenden being marketed with a lease of a few days over fifty eight years remaining. Elijah informally contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last month we were phoned by Mr and Mrs. N Petit , who owned a one bedroom apartment in Harpenden in July 1998. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable flats in Harpenden with an extended lease were valued about £275,000. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish on 23 March 2095. Given that there were 69 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Mr and Mrs. A Thompson completed a recently refurbished apartment in Harpenden in September 1998. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Harpenden with an extended lease were valued about £216,000. The average amount of ground rent was £60 collected yearly. The lease elapsed in 2084. Taking into account 58 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.