Harwich leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher amount will be due. Flat owners in Harwich will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service will provide you enhanced control over the value of your Harwich leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Zachary was the the leasehold proprietor of a conversion apartment in Harwich on the market with a lease of a little over 61 years left. Zachary on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Autumn we were phoned by Mr Kyle Miller , who purchased a newly refurbished apartment in Harwich in July 1995. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical residencies in Harwich with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 invoiced yearly. The lease finished in 2083. Taking into account 57 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including professional charges.
Last September we were called by Mr B Pérez , who took over the lease of a basement apartment in Harwich in April 2012. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar properties in Harwich with a long lease were valued about £245,000. The average ground rent payable was £50 billed monthly. The lease end date was in 2094. Considering the 68 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.