It’s a harsh truth that a Harwich residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Harwich property prices.Once your lease nears 85ish years, you need to 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 dips below eighty years - otherwise a higher amount will be payable. Most flat owners in Harwich will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. 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 conveyancing solicitor for the duration of the formalities.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Harwich can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
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.
Subsequent to protracted negotiations with the freeholder of her studio flat in Harwich, Samantha initiated the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension completed in May 2007. The landlord’s charges were negotiated to below 650 GBP.
Last Winter we were called by Mr and Mrs. M Martínez , who purchased a garden flat in Harwich in July 2010. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Harwich with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 collected quarterly. The lease elapsed on 9 October 2102. Having 77 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Last Summer we were e-mailed by Mr and Mrs. O Walker , who took over the lease of a ground floor apartment in Harwich in November 2002. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparative properties in Harwich with an extended lease were worth £183,600. The average ground rent payable was £65 collected per annum. The lease ran out on 3 November 2082. Having 57 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including costs.