Harwich leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Harwich will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold premises in Harwich with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Harwich can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Harwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful negotiations with the freeholder of her studio apartment in Harwich, Chantelle initiated the lease extension process as the eighty year mark was swiftly coming. The transaction was finalised in March 2013. The freeholder’s costs were restricted to about 500 GBP.
Last Summer we were contacted by Dr Sian Richardson , who was assigned a lease of a one bedroom flat in Harwich in August 2003. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Harwich with a long lease were in the region of £245,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated in 2094. Given that there were 68 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
Mrs W Flores was assigned a lease of a newly refurbished apartment in Harwich in May 2003. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative properties in Harwich with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ended in 2105. Considering the 79 years remaining we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.