Unfortunately that a Harwich residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Harwich property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% 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 the property Most flat owners in Harwich will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Harwich with over 100 years unexpired 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
Lender | Requirement |
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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. |
Bank of Scotland | 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. |
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. |
Irrespective of whether you are a tenant or a landlord in Harwich,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Harwich valuers.
Following lengthy correspondence with the landlord of her studio apartment in Harwich, Naomi started the lease extension process as the 80 year threshold was swiftly advancing. The lease extension was concluded in August 2014. The landlord’s charges were negotiated to under six hundred pounds.
Last Spring we were called by Mr and Mrs. B Howard , who owned a newly refurbished apartment in Harwich in July 2009. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar properties in Harwich with an extended lease were in the region of £254,200. The average amount of ground rent was £60 collected per annum. The lease finished in 2075. Given that there were 51 years remaining we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus fees.
Last year we were called by Mr and Mrs. J Jackson , who completed a studio apartment in Harwich in February 1999. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable premises in Harwich with an extended lease were in the region of £210,600. The average ground rent payable was £45 billed quarterly. The lease came to a finish on 8 April 2086. Having 62 years as a residual term we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.