The market value of Harrogate leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 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 |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Harrogate can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in this area.
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 in-depth market knowledge procuring Harrogate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Kian, came critically near to the 80-year mark with the lease on his first floor flat in Harrogate. In buying his flat 19 years previously, the unexpired term was of minimal interest. Thankfully, he noticed he needed to take action soon on Extending the lease. Kian was able to extend his lease just under the wire last May. Kian and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If he failed to meet the deadline, the price would have become more costly by at least £925.
Mr and Mrs. J Rodríguez owned a first floor apartment in Harrogate in January 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Harrogate with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 invoiced annually. The lease expired in 2098. Having 73 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
In 2012 we were contacted by Ms Robyn Nelson who, having purchased a garden flat in Harrogate in October 2009. The question was if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Harrogate with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2087. Having 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.