Harwell leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Harwell will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Harwell can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 in-depth market knowledge dealing with Harwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the landlord of her one bedroom flat in Harwell, Millie commenced the lease extension process as the 80 year deadline was rapidly nearing. The lease extension was concluded in September 2005. The landlord’s costs were negotiated to below five hundred pounds.
Last Autumn we were called by Ms Hollie Thomas , who acquired a recently refurbished flat in Harwell in June 2000. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Harwell with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 billed monthly. The lease expired in 2096. Given that there were 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2010 we were phoned by Mr and Mrs. U Miller who, having took over the lease of a garden flat in Harwell in July 2002. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable premises in Harwell with an extended lease were in the region of £246,800. The average ground rent payable was £60 billed annually. The lease came to a finish in 2076. Taking into account 50 years remaining we calculated the premium to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of fees.