For those whose Harwich property is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold properties in Harwich with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her one bedroom apartment in Harwich, Ellen commenced the lease extension process as the eighty year threshold was rapidly coming. The lease extension was concluded in October 2006. The landlord’s charges were kept to an absolute minimum.
In 2009 we were called by Ms Ella Clarke who, having bought a basement flat in Harwich in June 2010. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Identical properties in Harwich with a long lease were worth £270,000. The average amount of ground rent was £55 billed every twelve months. The lease finished on 7 January 2101. Having 75 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Mr and Mrs. N Peterson owned a studio flat in Harwich in October 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Identical premises in Harwich with an extended lease were valued around £168,800. The mid-range ground rent payable was £60 collected annually. The lease termination date was on 23 April 2081. Given that there were 55 years unexpired we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus professional charges.