It’s a harsh certainty that a Harwich residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Harwich property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Most leasehold owners in Harwich will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Harwich with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works |
Lease extensions in Harwich can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 Harwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Jayden, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Harwich. Having bought his flat two decades ago, the lease term was of no relevance. As luck would have it, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Jayden arranged for a lease extension at the eleventh hour last September. Jayden and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If the lease had slipped below 80 years, the sum would have become more costly by a minimum £1,150.
Last month we were called by Ms A Gómez , who bought a one bedroom apartment in Harwich in July 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Harwich with 100 year plus lease were worth £256,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease came to a finish on 13 September 2078. Given that there were 52 years as a residual term we estimated the premium to the landlord to extend the lease to be between £39,000 and £45,000 not including costs.
In 2011 we were contacted by Dr H Brown who, having moved into a garden apartment in Harwich in September 2000. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable residencies in Harwich with an extended lease were worth £218,000. The average ground rent payable was £45 invoiced quarterly. The lease came to a finish in 2089. Given that there were 63 years unexpired we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus professional charges.