There is no doubt about it a leasehold flat or house in Harrow is a wasting asset as a result of the shortening lease. If the residual term has, more than 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Harrow will qualify for this right; however a conveyancing solicitor can confirm if you are eligible to extend your lease. 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.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Harrow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following unsuccessful discussions with the landlord of her leasehold flat in Harrow, Samantha initiated the lease extension process as the eighty year threshold was rapidly nearing. The lease extension was finalised in March 2014. The landlord’s fees were kept to an absolute minimum.
Last Summer we were called by Mr and Mrs. J Green , who moved into a basement flat in Harrow in May 2006. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar residencies in Harrow with a long lease were valued around £295,000. The average amount of ground rent was £45 billed monthly. The lease came to a finish on 17 September 2101. Taking into account 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
An example of a Lease Extension case for a Harrow premises is flat 93b Welldon Crescent in May 2009. The Tribunals valuation for a 90-year lease extension of this fat was £13,171 This case affected 1 flat. The unexpired term was 75.25 years.