The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Harton may extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Harton lease extension. Putting off that expense now simply escalates the amount you will ultimately have to pay for a lease extension.
Leasehold properties in Harton with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Harton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Harton valuers.
After lengthy discussions with the freeholder of her first floor apartment in Harton, Daisy commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension completed in May 2009. The freeholder’s fees were restricted to slightly above 450 GBP.
Mr I Clark acquired a basement flat in Harton in July 1998. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Harton with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease terminated on 1 June 2097. Taking into account 72 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
In 2014 we were e-mailed by Dr G Bennett who, having moved into a one bedroom apartment in Harton in September 2002. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Harton with an extended lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out on 23 May 2086. Given that there were 61 years left we estimated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of fees.