Harrow leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Harrow residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Harrow you must check if your lease has between seventy and 90 years left. There are compelling reasons why a Harrow leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Harrow with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Harrow can be a difficult process. We recommend you obtain guidance from a lawyer 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 Harrow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Toby owned a 2 bedroom flat in Harrow being sold with a lease of fraction over 61 years unexpired. Toby on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Toby to exercise his statutory right. Toby procured expert advice and secured satisfactory deal informally and sell the flat.
Mr and Mrs. R Clarke acquired a garden flat in Harrow in June 2007. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar flats in Harrow with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 invoiced quarterly. The lease came to a finish in 2084. Having 58 years remaining we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
An example of a Lease Extension case for a Harrow property 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 related to 1 flat. The unexpired term was 75.25 years.