With a long leasehold property in Harwell, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Harwell with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below eighty years left, under the relevant Act the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Harwell lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Half a year ago Callum, came very near to the 80-year mark with the lease on his leasehold apartment in Harwell. Having purchased his property two decades ago, the unexpired term was of little significance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Callum arranged for a lease extension just under the wire last March. Callum and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the sum would have escalated by at least £975.
In 2009 we were contacted by Ms W Nguyen who, having acquired a ground floor flat in Harwell in April 2011. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Harwell with a long lease were valued around £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease terminated on 20 June 2095. Having 69 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Mr and Mrs. K Kelly purchased a one bedroom flat in Harwell in February 2010. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparative homes in Harwell with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 collected quarterly. The lease finished in 2106. Having 80 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.