There is no doubt about it a leasehold flat or house in Harwich is a wasting asset as a result of the shortening lease. Where the lease has, in excess of one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner than later. Most flat owners in Harwich will meet the qualifying criteria; however a conveyancing solicitor will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Virgin | |
| Yorkshire Building Society |
Engaging our service will provide you enhanced control over the value of your Harwich leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Ben, came very close to the 80-year mark with the lease on his two bedroom apartment in Harwich. Having bought his home 18 years previously, the lease term was of no bearing. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Ben arranged for a lease extension just under the wire in September. Ben and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If the lease had slipped below eighty years, the amount would have increased by at least £1,075.
In 2009 we were approached by Dr Y Vincent who, having completed a newly refurbished flat in Harwich in August 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative homes in Harwich with an extended lease were valued around £193,400. The average amount of ground rent was £65 collected quarterly. The lease termination date was in 2085. Having 59 years outstanding we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including expenses.
Last Summer we were phoned by Dr Kelsey Leroy , who acquired a first floor flat in Harwich in September 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Harwich with an extended lease were valued around £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease ended on 3 May 2096. Taking into account 70 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.