As the length of the unexpired term of a Harrogate domestic lease diminished so does its value and therefore the value of your property. If the lease has, beyond 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. Most flat owners in Harrogate will qualify for this right; that being said a conveyancer will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Harrogate with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Harrogate leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her garden flat in Harrogate, Maisie started the lease extension process as the 80 year mark was quickly advancing. The legal work was concluded in July 2006. The freeholder’s costs were kept to an absolute minimum.
Dr F Morgan bought a one bedroom flat in Harrogate in November 2012. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative properties in Harrogate with 100 year plus lease were in the region of £208,600. The average amount of ground rent was £60 billed monthly. The lease came to a finish in 2082. Considering the 57 years remaining we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus costs.
Mr and Mrs. J Howard moved into a ground floor apartment in Harrogate in February 2006. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable residencies in Harrogate with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 collected annually. The lease ran out in 2102. Considering the 77 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.