The closer a domestic lease in Harwich gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Harwich will qualify for this right; that being said a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Harwich can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
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.
Following lengthy negotiations with the landlord of her studio apartment in Harwich, Elizabeth started the lease extension process as the eighty year mark was swiftly nearing. The lease extension was concluded in October 2009. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were e-mailed by Mrs Laura Torres who, having acquired a garden flat in Harwich in July 1996. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar premises in Harwich with 100 year plus lease were worth £200,800. The average ground rent payable was £65 invoiced quarterly. The lease concluded in 2086. Given that there were 60 years as a residual term we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including professional charges.
Mr and Mrs. E Vincent purchased a basement apartment in Harwich in September 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Harwich with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ended on 2 November 2097. Taking into account 71 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.