Unfortunately that a Harton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Harton property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Harton will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Harton can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Harton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy owned a conversion apartment in Harton being sold with a lease of a few days over 72 years outstanding. Teddy informally contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Teddy to invoke his statutory right. Teddy procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Mrs M Laurent bought a one bedroom apartment in Harton in January 2003. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable flats in Harton with 100 year plus lease were in the region of £184,000. The mid-range ground rent payable was £55 billed quarterly. The lease came to a finish in 2078. Given that there were 53 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.
In 2011 we were contacted by Mr Rory Clark who, having completed a purpose-built apartment in Harton in August 2000. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Harton with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 invoiced per annum. The lease ended in 2098. Considering the 73 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.