As the length of the unexpired term of a Harwich domestic lease lessens so does its value and therefore the value of your property. Where the lease has, beyond 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Harwich will meet the qualifying criteria; that being said a conveyancer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers 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 lawyer we work with provide it.
In 2014 Omar, came seriously near to the eighty-year mark with the lease on his basement flat in Harwich. In buying his property 19 years previously, the lease term was of little concern. by good luck, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Omar arranged for a lease extension at the eleventh hour in April. Omar and the freeholder via the management company subsequently settled on a premium of £6,000 . If the lease had dropped to less than 80 years, the premium would have escalated by at least £1,025.
In 2014 we were e-mailed by Mr and Mrs. P Taylor who, having owned a one bedroom flat in Harwich in September 2000. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable residencies in Harwich with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish on 23 January 2097. Having 71 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
In 2014 we were phoned by Dr R Patel who, having took over the lease of a garden flat in Harwich in September 2002. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable flats in Harwich with 100 year plus lease were valued around £254,200. The mid-range amount of ground rent was £60 invoiced annually. The lease expired in 2077. Given that there were 51 years outstanding we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus fees.