Harwich leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Harwich will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain situations you may not qualify. There are also strict deadlines and formalities to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Harwich 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.
In 2014 Eli, started to get close to the 80-year mark with the lease on his basement apartment in Harwich. In buying his property 19 years ago, the unexpired term was of little relevance. Fortunately, he noticed he needed to take steps soon on a lease extension. Eli was able to extend his lease just in the nick of time in March. Eli and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If the lease had fallen below 80 years, the price would have become more exhorbitant by a minimum £875.
Last August we were approach by Mr Freddie Norbert , who acquired a ground floor apartment in Harwich in November 2011. The question was if we could approximate the premium would be to extend the lease by an additional years. Similar residencies in Harwich with 100 year plus lease were valued about £250,000. The average ground rent payable was £50 collected monthly. The lease elapsed in 2094. Taking into account 69 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. W Hill owned a one bedroom flat in Harwich in February 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Harwich with a long lease were worth £285,000. The average ground rent payable was £55 collected yearly. The lease concluded on 7 May 2105. Taking into account 80 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.