When it comes to residential leasehold property in Market Harborough, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Market Harborough with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has below eighty years remaining, under the current legislation the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Market Harborough with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Market Harborough can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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 Market Harborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the landlord of her one bedroom flat in Market Harborough, Catherine commenced the lease extension process as the 80 year mark was fast coming. The legal work was finalised in March 2006. The freeholder’s charges were kept to an absolute minimum.
Dr Stanley Cooper bought a garden apartment in Market Harborough in June 2012. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative properties in Market Harborough with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease expiry date was in 2100. Given that there were 75 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last Autumn we were contacted by Ms W Robinson , who purchased a one bedroom flat in Market Harborough in April 2000. The question was if we could approximate the price would likely be to extend the lease by ninety years. Similar residencies in Market Harborough with 100 year plus lease were worth £168,800. The mid-range ground rent payable was £60 collected per annum. The lease terminated on 9 August 2080. Taking into account 55 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including fees.