Harwich leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Harwich will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some cases you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Harwich with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Nationwide Building Society |
Lease extensions in Harwich can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Harwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Gabriel was the the leasehold owner of a studio flat in Harwich on the market with a lease of a little over 59 years outstanding. Gabriel on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert advice and secured an acceptable deal informally and readily saleable.
Mr and Mrs. L Evans bought a one bedroom apartment in Harwich in July 2002. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar flats in Harwich with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 collected annually. The lease ended on 6 September 2105. Having 79 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.
In 2012 we were approached by Mrs U Peterson who, having owned a basement apartment in Harwich in May 2012. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar flats in Harwich with a long lease were worth £193,400. The mid-range ground rent payable was £65 invoiced quarterly. The lease expiry date was in 2085. Having 59 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.