The nearer a domestic lease in Harton gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 125 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Most flat owners in Harton will meet the qualifying criteria; however a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Harton with over one hundred years left on the lease are sometimes 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 buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Harton can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 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.
Lewis owned a 2 bedroom apartment in Harton on the market with a lease of fraction over fifty eight years left. Lewis on an informal basis approached his freeholder 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 subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Lewis to exercise his statutory right. Lewis procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were phoned by Mr and Mrs. S Simon , who acquired a purpose-built apartment in Harton in October 2003. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparable homes in Harton with 100 year plus lease were worth £200,000. The average ground rent payable was £50 billed yearly. The lease end date was on 13 July 2102. Given that there were 77 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
In 2012 we were contacted by Mr Y Brooks who, having completed a ground floor apartment in Harton in July 1996. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Harton with 100 year plus lease were in the region of £260,200. The average ground rent payable was £65 collected yearly. The lease expiry date was on 17 May 2091. Considering the 66 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 not including legals.