The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Harwich may extend the lease for an additional ninety years under legislation. Please think carefully before delaying your Harwich lease extension. Postponing the costs today simply increases the price you will eventually have to pay to extend the lease.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The lawyers that we work with undertake 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.
Cameron owned a high value flat in Harwich on the market with a lease of just over 61 years left. Cameron on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Cameron to invoke his statutory right. Cameron procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Summer we were contacted by Mr and Mrs. G Torres , who purchased a garden apartment in Harwich in September 1998. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Harwich with 100 year plus lease were valued about £260,000. The mid-range ground rent payable was £50 collected annually. The lease ran out in 2098. Given that there were 72 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Last Summer we were phoned by Ms Alice Howard , who was assigned a lease of a garden flat in Harwich in September 2008. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative properties in Harwich with a long lease were in the region of £256,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease lapsed on 13 August 2078. Given that there were 52 years left we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 plus expenses.