Harton leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Harton will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Chelsea 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Harton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Harton valuers.
Evan was the the leasehold proprietor of a conversion apartment in Harton on the market with a lease of fraction over fifty eight years unexpired. Evan informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Evan to invoke his statutory right. Evan obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. S Michel bought a basement flat in Harton in April 2005. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar properties in Harton with 100 year plus lease were worth £280,000. The average ground rent payable was £45 collected every twelve months. The lease expired on 19 January 2096. Having 70 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Last Winter we were e-mailed by Dr Y Watson , who took over the lease of a studio apartment in Harton in August 2010. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Harton with a long lease were in the region of £223,400. The average ground rent payable was £60 collected quarterly. The lease came to a finish in 2085. Considering the 59 years outstanding we estimated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus expenses.