When it comes to domestic leasehold property in Harwich, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years left. Residents in Harwich with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When a lease has below eighty years remaining, under the current statute the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
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 conveyancer we work with provide it.
Subsequent to protracted correspondence with the freeholder of her garden flat in Harwich, Ellen commenced the lease extension process as the 80 year threshold was swiftly nearing. The legal work completed in September 2008. The landlord’s costs were restricted to slightly above 450 GBP.
Dr Hunter Peterson moved into a one bedroom flat in Harwich in September 2002. The question was if we could approximate the price would be to extend the lease by ninety years. Identical premises in Harwich with a long lease were worth £290,000. The average amount of ground rent was £60 billed monthly. The lease concluded in 2102. Having 80 years unexpired we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.
Dr S Girard owned a garden apartment in Harwich in November 2009. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Comparable premises in Harwich with 100 year plus lease were worth £200,800. The average ground rent payable was £65 invoiced monthly. The lease lapsed on 21 September 2082. Having 60 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus costs.