It’s a harsh certainty that a Market Harborough residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Market Harborough property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term falls under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Market Harborough will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| The Mortgage Works |
The lawyers that we work with handle Market Harborough 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 lawyer we work with provide it.
Jude was the the leasehold owner of a conversion apartment in Market Harborough on the market with a lease of a few days over 59 years remaining. Jude on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last year we were e-mailed by Mrs Georgina Garcia , who was assigned a lease of a purpose-built flat in Market Harborough in June 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparative flats in Market Harborough with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded in 2103. Given that there were 77 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.
Last Christmas we were approach by Ms Leah Moore , who completed a garden flat in Market Harborough in June 2010. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparable flats in Market Harborough with an extended lease were in the region of £183,600. The average amount of ground rent was £65 collected yearly. The lease lapsed on 27 July 2083. Taking into account 57 years left we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.